Samsung expects to extend its sales lead over Apple and Nokia in the smartphone market, with company wide operating profits likely to hit 6.7 trillion KWN ($5.9 billion) in Q2 2012.

That's according to the Korean firm's latest projections, with analysts claiming profits could rise even further as sales of Samsung's Galaxy S III pick up in the following quarter.

An eye on Europe

Such a figure would represent the firm's highest quarterly profit since 2008, up 79 percent on the figure posted during the same period in 2011.

However, Samsung claims its smartphone business is yet to reach its peak, stating that the European debt crisis is curtailing sales of its handsets in impacted regions.

"Europe is our biggest consumer electronics market and we may have to initiate cost cuts and product price increases should the euro fall further from the current level," an anonymous Samsung executive told Reuters.

"Our smartphones are flying off the shelves, with some outlets reporting 40-60 percent sales growth, but that's distorting the overall trading outlook which is more challenging due to the weak global economy and a weak euro."

Galaxy gains

Indeed, Samsung's projected second quarter revenue of 47 trillion KWN ($41.4 billion) would mean the company had missed forecasts made by analysts.

Many, however, expect Q3 2012 to be one of Samsung's strongest yet.

"Earnings will be stronger in the current quarter as sales of the high-end Galaxy S III will increase dramatically and drive the telecom division's earnings to above 5 trillion won," stated HMC Investment Securities analyst Nho Geun-chang.

"We estimate shipments of the Galaxy S III will reach 19 million units in the third quarter."

[source: Reuters]