Samsung Records Record Profits During Q2

Samsung makes £4.49bn in Q2, but warns of slowing smartphone growth

Samsung posted a record 7.7 trillion won (£4.49bn) profit during the second quarter of 2013, a year-on-year increase from 5.19 trillion won (£2.8bn), fuelled by strong sales in its display panel and mobile divisions.

Display panel sales were slightly down from last year, but increased demand for new TVs resulted in a 15 percent quarter-on-quarter increase.

Sales of Samsung smartphones defied the traditional seasonal slump, as the Korean manufacturer benefited from demand for new models such as the Samsung Galaxy S4 to shift 34.58 trillion won (£20bn) worth of mobile devices in the quarter.

Samsung results

Samsung Galaxy S4 Mini (1)This figure was also boosted by growing demand for tablets in both developed and emerging markets and an expanded product range, which includes the Samsung Galaxy Note 8.

The continued decline of the PC market impacted Samsung’s semiconductor business, but solid server and mobile demand for SSD offset the damage, while the smartphone and tablet NAND market grew.

However, despite entering a traditionally strong period for technology sales, Samsung was guarded about the company’s prospects going forward.

It expects the smartphone and tablet markets to continue to grow in both emerging and developing markets, although the pace of growth will slow, while continued sales of mobile devices would result in a windfall for its semiconductor unit.

But it warned that the company’s fortunes would not be immune from the ongoing economic problems affecting large swathes of Europe.

“Entering into a typically strong season for the IT industry, we expect earnings to continue to increase,” said Robert Yi, head of investor relations at Samsung. “However, we cannot overlook delayed economic recovery in Europe and risks from increased competition for smartphone and other set products.”

Samsung is currently the world’s largest mobile phone manufacturer, having deposed the previous incumbent Nokia, while it is also the largest smartphone maker in the world, ahead of its nearest rival Apple.

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