Samsung set to post better-than-expected profits

<p>Samsung has forecast a quarterly operating of around 5.9 trillion won.</p>

Samsung Electronics is set for another substantial boost in profits, according to its latest forecast.

The South Korean firm has announced that it expects to post a quarterly operating profit of around 5.9 trillion won (£3.65 billion) for the first three months of 2015. Should this prove to be the case then Samsung will have exceeded market expectations but would represent a drop of 30 per cent in profit from the same period a year earlier.

Samsung has long been boosted by its mobile division but this has struggled to retain its dominance against rivals such as Apple and Chinese smartphone-makers like Xiaomi. With the launch of products such as the iPhone 6 and the iPad, Apple has been able to keep up its strong performance levels.

In January, the Californian company posted a net profit of $18 billion (£11.8 billion) for its first fiscal quarter. It represented the largest quarterly profit ever made by a public company and dwarfed the £15.9 billion made by ExxonMobil in the second quarter of 2012, according to Standard and Poor's.

This level of performance highlights the challenge faced by the likes of Samsung when it comes to toppling Apple. However, the Korean company's latest trading update does provide some positive signs and it will be looking to continue this growth in the coming months and years.

New smartphone

Coinciding with Samsung's profit forecast, the company also unveiled its latest smartphone – the Galaxy S6 edge. The latest model from the Samsung factory floor is set to go head-to-head with Apple's iPhone 6S and builds on the success of the S5 and S6. The S6 edge has been billed as Samsung's most elegant phone ever.

This is encapsulated with a number of high-end materials, shimmer-effect cases and smooth finishes throughout, making this a hugely aesthetically pleasing model.

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.