Samsung Q2 net profit record at $4.5B, on smartphones

Samsung Q2 net profit record at $4.5B, on smartphones

Summary: South Korean electronics giant posts 48 percent jump in second quarter net profit, lifted by sales of smartphones and ultra-thin displays which it expects to pick up rest of year.

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South Korea's Samsung Electronics says strong demand for its mobile devices and ultra-thin displays helped it to post a record net profit and revenue for the second quarter.

For the three months ended June, it posted a 48 percent rise from last year in net profit at 5.19 trillion won (US$4.53 billion). This was on the back of a 21 percent jump in revenue to 47.59 trillion won (US$41.6 billion) over the same period.

In its results announced Friday, Samsung noted that by business unit, its mobile communications division was one of the leading growth drivers in the quarter with 20.52 trillion won (US$17.98 billion) in revenue.

"With the successful launch of this year’s flagship GALAXY S III smartphone and robust GALAXY Note sales, the handset unit saw earnings jump by 75 percent from a year earlier," Samsung said in its press release. Earlier this month, it had revealed that operating profit for the quarter rose 79 percent to 6.7 trillion won (US$5.9 billion), which analysts had linked to a boost from smartphone sales.

"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," said Robert Yi, senior vice president and head of investor relations, in the statement.

Yi added that despite the economic uncertainties, "Samsung will enhance the competitiveness of our main businesses and reinforce our value-added, differentiated products as a means to improve earnings." Earlier this month, the company was reported to have entered "crisis management" mode in order to mitigate the impact of the worsening Eurozone crisis.

Samsung forecasts the third quarter will be marginally positive "as demand for consumer electronics goods, including smartphones and tablets, remains strong and a stream of new products hit the market". It added that supply for display panels is also expected to increase, as TV makers prepare for the year-end holiday season.

Topics: Tech Industry, Hardware, Smartphones

About

Loves caption contests, leisurely strolls along supermarket aisles and watching How It's Made. Ryan has covered finance, politics, tech and sports for TV, radio and print. He is also co-author of best seller "Profit from the Panic". Ryan is an editor at ZDNet's Asia/Singapore office.

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2 comments
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  • Interesting that Ryan failed to mention

    that Samsung reported second-quarter profit that missed analysts’ estimates.
    CowLauncher
    • Do you really pay any attention to what the analysts predict?

      I suppose if they were right sometimes, we could have avoided all those prior market crashes? And also the mortgage crisis? And also the dot-com-bubble.

      My way of reading between the lines is when someone recomends "buy", I understand they are trying to "sell"...

      Anyway, all these ephemeral stock markets are based on hype, greed, and wishes with the real crooks laughing all the way to the bank.

      Likewise, both AAPL and MSFT also missed the US analysts' estimates. So? Big deal.

      But Samsung selling double the number of smartphones as Apple, that is a big deal.

      http://lmgtfy.com/?q=samsung+sells+twice+more+smartphones+than+apple
      About 1,110,000 results (0.27 seconds)

      ~~~~~~~~~~
      One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.
      ~ William Feather

      The only function of economic forecasting is to make astrology look respectable.
      ~ John Kenneth Galbraith

      An economist is an expert who will know tomorrow why the things he predicted yesterday didn't happen today.
      ~ Dr. Laurence J. Peter
      WinTard