Samsung's Results Jump, But Executives Are Cautious
Samsung Electronics Co. on Friday reported a record profit for the second quarter as expected, but company executives said that may have been the peak for the year as pricing pressures are likely to overwhelm the sales growth that normally occurs in the second half.
The company, which is expected this year to become the world’s largest technology manufacturer by sales, experienced big jumps in profits in its two component business–memory chips and liquid crystal display screens.
Its consumer product divisions, mainly cellphones and TVs, saw profit margins shrink due largely to price competition and increased marketing expenses.
Samsung executives said they expected the third and fourth quarters to be more of the same, though the profit squeeze in end products will likely be greater than the improvements in components.
