South Korea’s Samsung has posted a record net profit of 5.2 trillion won ($4.5 billion) in the second quarter, powered by strong smartphone sales despite the global downturn.
Samsung Electronics Co. said on Friday its second quarter profit rose 48 per cent over a year earlier as customers flocked to get Galaxy smartphones in the absence of competitors.
Its second-quarter operating profit spiked 79 per cent over a year earlier to 6.7 trillion won and its revenue rose 21 per cent to 47.6 trillion won, matching Samsung’s guidance released earlier this month. The operating profit, also at an all-time high, marked a 15 per cent rise from the previous quarter.
Shares of Samsung opened 1.9 per cent higher in Seoul after the quarterly financial results announcement. Samsung, the world’s largest maker of mobile phones, televisions and memory chips, benefited from runaway demand for its Android-powered smartphones, as rivals including Apple were slow to release new models.
Robust sales of Samsung’s high-end mobile gadgets, including the flagship Galaxy S3 smartphone, helped Samsung tide over a slowdown in other consumer electronics sectors such as televisions and personal computers that have been painful for its rivals and component suppliers.
In the second quarter, Samsung’s mobile business contributed 63 per cent of Samsung’s entire operating profit by generating 4.2 trillion won profit. Analysts guess Samsung sold around 50 million smartphones in the second quarter, including about 6.5 million Galaxy S3 phones.
Although the company does not release its mobile-phone sales figures, Samsung probably outperformed competitors in the top-end smartphone segment, while having a tougher time competing with Chinese brands such as ZTE and Huawei in the low-end smartphone markets, analysts said.