Sat, Jul 28, 2012 - Page 15 News List

Samsung posts US$4.5 billion profit


South Korea’s Samsung Electronics yesterday reported a record net profit of 5.19 trillion won (US$4.53 billion) in the second quarter, powered by strong smartphone sales, despite the global downturn.

The company, the world’s biggest technology firm in terms of revenue, also reported a record operating profit in April-June of 6.72 trillion won.

The net profit represented a 48 percent gain from a year earlier, while operating profit jumped 79 percent year-on-year.

Samsung cited robust demand for its mobile devices, including high-margin smartphones, along with strong sales of ultra-thin displays.

Total revenue rose 21 percent to 47.59 trillion won, in a quarter that is usually quieter for technology companies.

Market researcher Strategy Analytics said yesterday the company increased its share of the global smartphone market in the second quarter to 34.6 percent, compared with 17.8 percent for archrival Apple.

Samsung shipped 50.5 million smartphones, the largest number ever by any vendor in a single quarter, it said in a report.

“Samsung has been able to deliver hit models in most major price segments,” Strategy Analytics said, while Apple fans may be awaiting the launch of the next generation iPhone in September or October.

Samsung remained the world’s biggest seller of all types of mobile handsets in the second quarter, with a 25.7 percent market share, compared with Nokia’s 23.1 percent.

The company said its differentiated products and competitive technology helped it overcome a difficult business environment, but it struck a note of caution for the months ahead.

“As we move into the second half, continued fiscal instability in Europe and its effect on the global economy will result in the possibility of a slower than expected recovery and intensified market competition,” Samsung senior vice president Robert Yi said in a statement.

Analysts were more bullish, expecting an even better performance in coming quarters. They said smartphone earnings — which account for more than 50 percent of operating profit — would remain a strong contributor to its bottom line.

Samsung has sold more than 10 million Galaxy S III smartphones since its launch about two months ago.

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