Revenues in Samsung’s mobile division slow by 4% in Q1

Samsung Electronics has reported a modest rise in its first quarter revenues but that masked a four per cent fall in its mobile phone division.

The company posted revenues of KRW53.7 trillion (US$52 billion), and a US$500 million increase in profits to KRW7.57 trillion (USD7.5 billion).

Capital expenditure in the first quarter amounted to KRW5.4 trillion, which includes KRW3.3 trillion for the memory business and KRW700 billion for display.

Although market demand for both smartphones and tablets decreased during Q1 quarter-on-quarter, operating profits for the division jumped 18 per cent compared with the previous quarter thanks to steady smartphone shipments and a positive impact from adjustments of one-off expenses.

Samsung said that it expects to see profits rally in the second quarter and beyond, on the back of improved sales of display panels and home appliances. Orders for display panels that are used for premium smartphones and TVs are expected to increase, as new mobile devices are rolled out into the market and as consumers look forward to the upcoming World Cup in Brazil.