Smart phones boost profits at Samsung

Samsung has reported a decent set of numbers for its second quarter thanks to strong sales of its Galaxy smart phone and tablet products

Smart phones have delivered the business for Samsung with the vendor also benefiting from strong interest in its Galaxy range.

When the vendor isn't locked in court battles with Apple it is still able to sell a large number of smart phones and its second quarter operating profit reached 6.72 trillion won (£3.8bn) representing a 79% increase year-on-year.

With the successful launch of the Galaxy S III smartphone and robust Note sales, the handset unit saw earnings jump by 75% from a year earlier and meant the digital media & communications section of the firm accounted for 36.57 trillion won in sales, up 37%.

The vendor reported 47.60 trillion Korean won in revenue for the second quarter ended June 30, 2012, a 21% climb year-on-year and the quarter, the company’s consolidated net profit for the April-June period was 5.19 trillion won.

“Despite a difficult business environment, we achieved stable profits in the second quarter through our differentiated products and competitive technology,” said Robert Yi, senior vice president and head of investor relations.

The Visual Display Business also contributed with 8.58 trillion won in revenue for the quarter but the Semiconductor Business was the fly in the ointment as profits dropped by 38%.

Overall, Samsung expect the third quarter to be marginally positive as demand for consumer electronics goods, including smartphones and tablets, remains strong and of new products hit the market.

“As we move into the second half, continued fiscal instability in Europe and its effect on the global economy will result in the possibility of a slower-than-expected recovery and intensified market competition.” continued Yi.

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