Samsung's High-End Smartphone Sales Increases Profits
Strong sales of Samsung's high-end smartphones led to a 79 percent jump in the company's operating profits for the second quarter of 2012.
The mobile phones, flat screen panels, memory chips and TV maker in Suwon, South Korea said Friday in its guidance for the quarter that the operating profit for the quarter was likely to be about 6.7 trillion won (US$5.8 billion at the exchange rate on the last day of the quarter), compared to 3.75 million won in the same quarter last year.
Revenue was expected to be up by in the April-to June quarter by about 20 percent to 47 trillion won.
With its latest Galaxy S III expected to do well, the company is expected to retain its top position in the smartphone market in the quarter until it gets into a tight race with Apple's anticipated new iPhone in the later quarter, according to analysts.
"The 14.3 percent of operating profit margin indicates the strong sales of the company's high-end smartphone line-ups and they are expected to take away the ones of the rival companies," said Lee Sun Tae, an analyst with NH Investment & Securities.
Of the operating profits, about 4.1 trillion won came from smartphone sales, Lee said. Shipments of the Galaxy S III are expected to be about 20 million in the third quarter, he added.