Samsung, the world’s largest technology company by revenue, posted a 48 percent increase in its profits from last year. The net profit mounted to 5.2 trillion won ($4.5 billion) for the quarter. Though, it was lower than the average expectation of 5.6 trillion won.
The growing popularity of its Android-powered smartphones helped the Korean company to post such figures. The delay in the launch of Apple’s new iPhone also helped a bit. The robust sales of its flagship model, Galaxy S3, compensated for the slowdown in other consumer electronics sectors, such as televisions and personal computers. Samsung’s mobile division, which deals in smartphones, personal computers, and network equipment, contributed 63 percent of the total operating profit.
The total revenue for the world’s largest maker of mobile phones, televisions, and memory chips, increased by 21% to 47.6 trillion won. Operating profit increased by 79 percent to 6.7 trillion won, from a year earlier, and was 15% up from the previous quarter. Apart from the mobile division, there were improvements seen in flat-screens and TVs, but semiconductor profit declined due to slow demand for personal computers.
“The third quarter is expected to be marginally positive, as demand for consumer electronics goods, including smartphones and tablets, remains strong, and a stream of new products hit the market. Supply for display panels is also expected to increase, as TV makers prepare for the year-end holiday season,” Samsung said in a statement.
As per the company’s Mobile communications vice president, Kim Hyun-joon, global smartphone sales will not be slowed due to economic slowdown. He said that Samsung’s smartphones sales in China were encouraging, and the company will focus on more emerging markets to fuel growth.
Though the company does not release its mobile sales figures, according to analyst the company must have won the race in the top-end smartphone market, while in low-end smartphones it faced a severe competition from Chinese brands such as ZTE and Huawei. Also, increased sales of its smartphones will help the sales of its mobile processors, compensating for weak demand for computer memory chips.
Samsung which already has a wide range of mobile phones with various screen sizes, designs, and price ranges, may come up with a new version of the Galaxy Note at a German trade fair in the fall, in order to compete against Apple’s (NASDAQ:AAPL) new iPhone launch.
Analyst are expecting a record profit from the Korean company in the third quarter, despite the Euro-crisis and slowdown in Asia, as the sales of Galaxy S3 are expected to reach a peak before Apple unveils its new iPhone in October.