Samsung estimates 30.5 pct fall in quarterly operating profit year on year

Samsung Electronics Tuesday announced an estimated operating profit of $5.4 billion dollars for the JanuaryMarch quarter, 30.51 percent lower than in the previous year.

However, that figure is 11.53 percent higher than that of the preceding quarter.

Samsung’s estimate significantly exceeds the average of predictions for the firm from South Korean securities firms, at $5.02 billion.

Samsung valued sales for the quarter at $43.1 billion 12.44 percent lower than the same quarter last year and 10.87 percent lower than the quarter ending December.

South Korean experts believe Samsung may be on a path to recovery after several quarters of sharp declines in its mobile phone unit.

The company as usual did not break figures down into subsidiary business units and nor did it reveal net profit estimates for the quarter.

In 2014 Samsung Electronics saw its operating profit drop 32 percent due to falling sales in its smartphones and devices unit.

Recent data revealed Apple and Chinese manufacturers gaining ground, partly because of the lukewarm reception the S5 Galaxy smartphone received as the market awaits the imminent release of its successor, the S6 Galaxy.

Analysts suggest the success or failure of the S6 will determine the next set of results for the South Korean multinational.

Local analysts believe that the new smartphone, on sale from the end of this week, will help Samsung recover market dominance, with technological advances like wireless recharging.

Others argue its potential has been overplayed and it is unlikely to outcompete the Apple iPhone 6.

Samsung Electronics will publish its full first quarter result sheet at the end of April.