Samsung reports record profits on Galaxy smartphone sales

Samsung Electronics has reported record profits in the three months to September- led by strong sales of it’s Galaxy range of smartphones.Samsung reports record profits on Galaxy smartphone salesNet profits were 6.5 trillion won (£3.7 billion), up 91% from a year earlier.

The South Korean phonemaker was also boosted by strong demand at its display panel unit.

While Samsung has enjoyed tremendous success with its Galaxy range of smartphones, other manufacturers have been releasing new models.

Samsung expects market competition to intensify but “we will do our best to sustain our earnings momentum throughout the fourth quarter by implementing strategies we have developed for our businesses”, said Robert Yi, head of investor relations.

The firm said its flagship Galaxy SIII smartphone has been a key driver in raising profit margins.

“The business environment remained difficult with global economic uncertainties persisting amid the fiscal concerns in the US and Europe.  However, we continued to break our quarterly profit records,” Mr Yi added.

The display panels unit at the firm had revenues of 8.46 trillion won, up 19% from the previous year. The unit is now profitable.

And the firm expects a “flurry of new mobile devices hitting the market” to boost sales of application processors and image sensors it makes that power smartphones and tablet PCs.

Analysts said that increased competition means that firms may have to lower their prices to attract buyers as well as spend more on their marketing campaigns – which will dent their profit margins.

Samsung, which derives the bulk of its earnings from smartphone sales, is likely to feel the affect of any such moves.

However, increased competition and its legal tussles with Apple have raised concerns over its future performance.

Samsung’s success in the smartphone and tablet PC sectors has been accompanied by legal tussles with its biggest rival, Apple.

The two firms have filed legal cases against each other in more than 10 countries, each accusing the other of violating its patents.

Earlier this year, a court in the US ruled that Samsung had violated some of Apple’s patents and awarded the US firm $1.05 billion in damages. However, Samsung is appealing against the ruling.

Meanwhile, Samsung has tasted some success in countries such as the UK and Netherlands.

November 20, 2012  Tags: , , , , , , , , ,   Posted in: Business Communications, Business Profits, Business Sales, Business Win, Connected Business, Digital Business, Global Business, Growing Business, Growing Profits, Growing Sales, Online Profits Growth, Online Sales Growth, Technological Businesses, Uncategorized

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