Samsung star continues to rise

Korean electronics giant posts record Q2 results with smartphone sales driving profitability

Samsung has cemented its place in the top global vendor billing, posting a whopping 48 per cent spike in second-quarter profit.

Consolidated operating profit hit 5.85tn South Korean won – a whopping 98 per cent increase on the same period last year. Net profit for the quarter reached 5.2tn won ($4.4bn) on revenue of 47.6tn won.

The main reason for the increase was a mammoth rise in smartphone sales, with the Galaxy S3 accounting for more than 60 per cent of its operating profit.

It outperformed main rival Apple during the quarter, which posted a mere 21 per cent rise in profit.

Samsung has enjoyed a stellar year so far, having ousted Nokia from the number-one mobile phone maker spot earlier this year, and trounced Apple in the smartphone stakes.

Robert Yi, senior vice president and head of investor relations at Samsung, said: “Despite difficult business environments including seasonal low demand for major products such as PCs and TVs amid a global economic slowdown, we achieved record quarterly results based on our differentiated products and technology leadership.

“We cautiously expect our earnings momentum to continue going forward, as competitiveness in our major businesses is enhanced."

The vendor said it expects to improve profitability in the chip business with a recovery in PC DRAM prices and by expanding its new product category with mobile application processors based on 32 nanometer-class technology. The firm also plans to bolster its competitive edge in mobile phones, it said, with the debut of new high-end smartphones, and by reinforcing its presence in emerging markets.