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Samsung profits up strongly on smartphone growth
2013-07-26 08:52:00| Telecompaper Headlines
(Telecompaper) Samsung Electronics has reported a strong increase in second-quarter profits, led by its expansion in the mobile market. The company's net profit jumped to KRW 7.77 trillion from 5.19 trillion a year earlier. Operating profit rose to KRW 9.53 trillion from KRW 6.46 trillion, and sales improved to KRW 57.46 trillion from KRW 47.60 trillion, in line with Samsung's earlier guidance. At the mobile division (IM), revenues improved to KRW 35.54 trillion from KRW 23.36 trillion a year ago. Samsung said the handset market was seasonally weak, with only a low single-digit increase in the smartphone segment compared to the first quarter of this year. Tablet demand was also lower in developed markets, but was growing in emerging markets. Operating profit at the division was down 3 percent from Q1 to KRW 6.28 trillion amid higher marketing costs for the launch of the Galaxy S4 as well as R&D and retail channel investments, Samsung said. Smartphone shipments increased, the company said without releasing numbers, noting growth in North America and China. PC shipments were lower in line with the slower market demand. Going forward the company expects mobile phone growth to be more balanced between developed countries interested in LTE phones and experiencing intense competition and emerging markets such as China interested in mass-market smartphones. Tablet demand is expected to continue to grow strongly in all countries. Smasung will pay an interim dividend of KRW 500 per share, worth in total KRW 75.37 billion.
Tags: growth
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Category:Telecommunications