Smartphone sales drive Samsung's revenue growth

The company is seeing high growth in sales of its high-end smartphones

Samsung Electronics reported strong growth in sales and profits in the second quarter, driven primarily by its mobile phone business.

The company said Friday that net profit was up 48 percent to 5.19 trillion won (US$4.5 billion) in the quarter from a year earlier, while its revenue was up 21 percent to 47.6 trillion won.

Its mobile phone business was the highest performer with revenue of 20.52 trillion won, up 75 percent year-on-year. The company said its revenue and profit in mobile grew over the previous quarter due to an improvement in its product mix, and an increase in sales of its high-end smartphones.

Research firms IDC and Strategy Analytics said Samsung's shipments of smartphones in the second quarter were nearly double that of closest competitor Apple. Samsung shipped 50.5 million smartphones in the quarter, more than double from a year ago, compared to 26 million by Apple, according to Strategy Analytics. Samsung was also the largest vendor of mobile handsets ahead of Nokia, according to both research firms.

Competitor Apple said earlier this week it sold 17.0 million iPad tablets in the quarter ended June 30, up 84 percent from the same period last year. Sales of its iPhone also increased by 28 percent.

Samsung and Apple are locked in patent disputes in many countries, seeking to block sales of products in various markets including the U.S. and Europe.

The South Korean company launched the Samsung Galaxy III smartphone in May, and said it has seen "solid sales" of its Galaxy Note. Its feature phone shipments decreased from the previous quarter in line with industry trends, it said.

The company saw its consumer electronics revenue grow by 7 percent, and display panel business rise 16 percent, but its semiconductor revenue dropped 6 percent over the same quarter last year.

It said that there had been strong demand for panels for tablets, even as demand for panels for TVs slowed because of the economic crises in Europe, and delays in purchases in China because of a new subsidy policy. The semiconductor business witnessed weak PC demand even though demand for mobile devices was relatively stronger.

Samsung said demand for smartphones will pick up in the current quarter as a diverse range of products are likely to be launched by vendors. Apple is for example rumored to be planning the launch of a new version of its iPhone later this year.

John Ribeiro covers outsourcing and general technology breaking news from India for The IDG News Service. Follow John on Twitter at @Johnribeiro. John's e-mail address is john_ribeiro@idg.com

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?