Smartphone success pushes 50% rise in Q2 net profit at Samsung

Samsung reported a near 50 per cent rise in net profit for the second quarter on the back of strong smartphone sales.

The South Korean electronics vendor reported Q2 net profit of KRW5.19 trillion (US$4.56 billion), up 48 per cent from KRW3.51 trillion a year ago. Total revenue rose 21 per cent to KRW47.6 trillion with the mobile unit accounting for KRW20.52 trillion, a 75 per cent increase year-on-year.

“Handset shipments gained quarter-on-quarter and year-on-year, driven mainly by global orders for premium smartphones,” Samsung said in a statement.

According to figures published by Strategy Analytics, Samsung consolidated its lead as the world’s largest smartphone vendor by selling 50.5 million devices in Q2. It is thought that the flagship Galaxy S3 – launched during the quarter – accounted for 6.5 million in sales.

By comparison Apple announced this week it had sold 26 million iPhones in Q2.

With the so-called ‘iPhone 5’ not due until October, Samsung was upbeat on its prospects in the current quarter. “The smartphone market, in particular, will continue to be profitable as consumers are given a wider choice of new products at a wider range of prices while orders from emerging markets increase,” the vendor said.

At Samsung’s other major units, sales at the semiconductor division declined six per cent to KRW8.6 trillion, while the display panel division’s sales grew 16 per cent to KRW8.25 trillion.