Galaxy Sales Boost Samsung's Record Profits
Sales of the Galaxy smartphone drove record quarterly
profit of $5.85 billion at Samsung Electronics, although
the South Korean tech giant's TV and home appliance
businesses are not so profitable due to low demand in
Europe.
In the company's April-June earnings guidance released on
Friday, Samsung, valued at $170 billion and its estimated
operating profit jumped 79 percent to 6.7 trillion won from
a year ago.
Current quarter mobile profits are expected to forge further ahead as the latest Galaxy S III model enjoys strong sales, before the next iPhone launch sometime later this year. But even if the next iPhone slow Samsung's handset earnings growth, it will boost the Korean firm's semiconductor earnings as Samsung is the sole producer of processing chips used to power the iPhone and iPad, and also supplies Apple with mobile memory chips, NAND flash and display screens.
Although the flagship Galaxy smartphones are driving Samsung's profits and are likely to have stretched their lead over rivals Apple and Nokia, other businesses such as chips and consumer electronics are battling weak prices and demand, along with a weak euro.
Europe is Samsung's biggest consumer electronics market.
Samsung is due to release its full second-quarter results towards the end of this month.
Current quarter mobile profits are expected to forge further ahead as the latest Galaxy S III model enjoys strong sales, before the next iPhone launch sometime later this year. But even if the next iPhone slow Samsung's handset earnings growth, it will boost the Korean firm's semiconductor earnings as Samsung is the sole producer of processing chips used to power the iPhone and iPad, and also supplies Apple with mobile memory chips, NAND flash and display screens.
Although the flagship Galaxy smartphones are driving Samsung's profits and are likely to have stretched their lead over rivals Apple and Nokia, other businesses such as chips and consumer electronics are battling weak prices and demand, along with a weak euro.
Europe is Samsung's biggest consumer electronics market.
Samsung is due to release its full second-quarter results towards the end of this month.