Samsung Electronics has forecast drop in his profit margin of 26%. This is due to its suffering of liquid crystal display business. It is estimated by Samsung that its operating profit for the quarter of April to June will be 3.7tn won which is less compared to last years 5.01tn won.

Yet the profit figure of South Korean company is not released. Samsung is considered as the top maker of flat television and memory chips in the world. according to analyst this slump is not that surprising.

Kim Young-Chan from Shinhan Investment Corp says the forecast is somehow better than what was expected by the market. It is seen that several were slashing their forecast because of loss caused from LCD division.

Even after seeing the bare outlook some of the industry watchers expecting that in coming month the performance of Samsung would improve largely. This could happen because of its high sales of Galaxy smart phones and tablets computers.

As per the company till the June end around the world Samsung had sold nearly 3 million units of its Galaxy model. Mr. Kim said again these smart phones by the second half of this year will increase the recovery earning of Samsung, but in the third quarter the competition may again get tough due to Apple’s introduction of new iPhone.

Analyst said this increase in competition with uncertainty in the global economy will for continuous time duration pressurize Samsung for rest of the time period of the year.