Samsung Sees Weaker Earnings

Samsung Electronics Co. said it expects weaker third-quarter earnings, reflecting a decline in demand for its computer chips and flat panels, although brisk sales of its smartphones may help offset slower sales of other products.

The relative strength of the Korean giant’s telecom sector underscores the significance of a global legal battle Samsung is currently engaged in with Apple Inc. in which both companies are seeking to block sales of each others’ smartphones and tablet computers. A verdict is expected next week in Australia on whether Apple will win a temporary sales ban on Samsung’s Galaxy Tab, while hearings are also scheduled in the U.S. and The Netherlands in the patent dispute.

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