Samsung posts a record quarterly profit

Press release   •   Apr 26, 2013 14:14 BST

Samsung Electronics has posted a record quarterly profit, boosted mainly by growing sales of its smartphones. It made a net profit of 7.15tn won ($6.4bn; £4.2bn) during the period, up from 5.05tn won a year ago. Profits also rose from the previous quarter.

Samsung has now taken more market share from Apple's iPhone in the smartphone market, according to figures from IDC. Samsung - which has seen huge success with its Galaxy range of handsets - continued to see sales soar, and now account for one third of the global market.

Sales of the iPhone 5 helped Apple's volumes grow 6.6% to 37.4 million phones sold in the quarter from a year earlier, but that wasn't enough to stop its share of the market dropping from 23% to 17.3%.

The introduction of a flood of cheaper Android-powered devices from Samsung raised its shipments by 60% to 70.7 million handsets, which equates to 32.7% of the market, up from 28.8% a year earlier.

The results highlight Samsung's growing reliance on its successful mobile device business, overwhelmingly the biggest component of its IT and mobile division, which accounted for nearly three quarters of operating profit in the quarter. The company said it had been boosted by strong sales of "hero products" - notably the Galaxy S3 smartphone and the larger Galaxy Note 2.

The figures will make happy reading for Samsung executives, who still hope to see a further upswing in sales when its Samsung Galaxy 4 takes flight in the US this weekend; the company also reported record quarterly profits from its phone division.

The company recorded its sixth straight quarterly profit growth: a $7.9bn operating profit for the quarter included a record $5.8bn profit from its handset division, as Samsung continues to put pressure on Apple.

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