* Company op profit guidance at 4.2 trln won vs 4.9 trln won
* Focus on profits from telecoms business
* Chip profit to slump, but resilient despite weak demand
* LCD seen posting 3rd consecutive losses
By Hyunjoo Jin
SEOUL, Oct 28 Samsung Electronics Co
, the world's top technology firm by revenue, is set
to report a 14 percent fall in quarterly profit on Friday, and
the focus will be on the level of upside surprise from its
roaring handset business.
The South Korean firm, which had little traction in the
smartphone market until early last year, has staged a strong
comeback in the lucrative smartphone market and the business is
emerging as a major profit pillar, mitigating a sharp profit
fall from its mainstay memory chips.
The company estimated earlier this month that its
July-September operating profit would top even the most bullish
street view and come at around 4.2 trillion won, which analysts
expect will be mainly driven by storng handset sales.
The profit estimate beats a 3.4 trillion won consensus
forecast by analysts and would be down 14 percent from a year
ago but up 12 percent from the preceding quarter.
Market will now focus on how resiliently its handset
business will perform in the crucial year-end holiday quarter as
its flagship Galaxy lineup of products will square off against a
series of new models released by Apple Inc , Nokia
, and HTC Corp .
Samsung, the biggest handset maker in Google's
Android camp, is almost certain to surpass Apple as the world's
biggest smartphone maker in unit terms in the third quarter,
buoyed by strong sales of Galaxy products.
But it faces a tough fourth-quarter as the new iPhone,
introduced earlier this month, sets new first weekend record
sales and Nokia fights back with its first phones based on
Microsoft's Windows software.
Samsung's bread-and-butter chip business is forecast to post
a profit slump from a year earlier, but is seen holding up well
thanks to relatively high exposure to more lucrative mobile
Rivals from Hynix Semiconductor Inc , Elpida
Memory Inc and Micron Technology have swung to a
loss due to a collapse in prices of computer memory chips.
Samsung plans to expand its capital expenditure in
semiconductors by 50 percent to a record 15 trillion won ($13
billion) next next year, a media report said on Monday, citing
Samsung and industry officials.
Samsung's shares have dropped 2.1 percent this year,
outperforming a 6.7 percent fall in the KOSPI .
Its flat-screen business, which vies the world's top
position with local rival LG Display , is set to
remain the biggest earnings drain, losing money for a third
consecutive quarter due to weak demand of TVs and PCs.
Samsung's close rival LG Display reported its biggest
quarterly loss last week, while Taiwan's AU Optronics Corp
on Tuesday posted a worse-than-expected loss in the
third quarter, and further slashed its capital spending plan
Samsung trails Nokia in mobile phones, competes
with Sony Corp and LG Electronics Inc in
TVs, and Toshiba Corp , Hynix in chips and LG Display