Samsung reports a record quarterly profit

Press Release   •   Jul 26, 2013 10:21 BST

Samsung Electronics has reported a record quarterly profit boosted by growing smartphone sales and a surge in earnings at its display panel division.

Net profit was 7.8 trillion won ($7bn; £4.5bn) in the April to June quarter, a 50% jump from a year ago.

It said the launch of new models such as the Galaxy S4 helped boost sales of smartphones during the period.

Samsung's shares have lost ground in recent months on concerns that the high-end smartphone market is slowing down, something which Samsung itself alluded to in its own earnings announcement.

"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,"

The latest industry figures show that Samsung shipped 2.4 times more smartphones worldwide than Apple in the second quarter, up from 1.9 times in the first quarter of 2013 and the second quarter last year, and from 1.3 times in the first quarter of 2012.

It also represents Samsung's biggest ever lead over Apple on smartphone shipments since the first iPhone launched in early 2007.

Samsung does not break down shipment numbers but estimates predict the company sold 76 million smartphones in the second quarter, and took a 33% share of the global smartphone market.

Apple sold 31.2 million, giving it a 13.6% share, which beat expectations but marked a slide from 16.6% last year.

However, in recent weeks various analysts and brokerages have voiced concerns over whether Samsung can continue to sustain high growth.

They have cited increased competition, saturation in key markets and the emergence of low-cost smartphone devices from China as key threats.

For more information on Samsung, see the latest research: Samsung Electronics

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