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Samsung estimate drop in Q3 earnings

Samsung have said that they expect weaker than initially expected Q3 results which is connected to a decline in demand for their flat panels and computer chips. The Wall Street Journal add that the healthy sales of their smartphones however may help counter balance the figures a little.

This news however raises concerns for the company, as they are currently locked in legal battle with Apple over patent infringements. Apple have been successful in stopping and slowing down Samsung phone and tablet sales in countries such as Germany and Australia. The fact that Samsung sales for their smartphones are an integral part of their business model will be worrying for their chief executive.

A verdict is expected next week in Australia on the Apple case, and whether they can win a sales ban on the Galaxy Tab. The U.S. and The Netherlands also will also hold hearings on legal sales bans.

Samsung say they would estimate Q3 operating profit around the $3.5 billion mark. Analysts are claiming that the liquid crystal display business is causing some sales problems for the company. There is also a decline in demand for Samsung memory chips.

Samsung however are fighting back against Apple, filing a lawsuit in Italy and France, claiming the iPhone 4S is breaching some of their patents.

Kitguru says: The legal issues with Apple are currently hurting sales.

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