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Samsung 's mobile profits rose 52% year-over-year in Q2

Posted: , by Alan F.

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Samsung 's mobile profits rose 52% year-over-year in Q2
After estimating its second quarter earnings earlier in the month, Samsung posted its official results for the the period on Friday morning. Profits at the Korean based manufacturer's largest profit contributor, the mobile business, rose 52% year-over-year to 6.28 trillion won for the second quarter ($5.7 billion USD), but dropped 3.5% sequentially from Q1. Mobile profits were led by the launch of the Samsung Galaxy S4, the company's latest flagship Android model. 76 million Samsung branded smartphones were sold in the second quarter. Revenue for the division rose 9% from Q1 to 34.58 trillion Korean Won ($31.1 billion USD) and 54% from 22.43 trillion won ($20.2 billion USD) in the same period of 2012. For the first quarter, Samsung's mobile division garnered 31.77 trillion Korean won ($29 billion USD) in sales.

Analysts are concerned over what they perceive to be slower smartphone sales in the immediate future. Samsung says to expect strong sales, but at a slower growth rate than what was seen in the second quarter. "The strong growth streak for the smartphone market is expected to continue in the third quarter albeit at a slower pace," read a statement from the Korean manufacturer. TongYang Securities forecast sales of 27 million units of the Samsung Galaxy S4 for the current period, up from 22 million sold in the first quarter. The investment house sees smartphone sales led by the unannounced Samsung Galaxy Note III and the Samsung Galaxy S4 mini.

Samsung's smartphones are expected to account for 70% of its mobile phone shipments in the third quarter thanks to strong results in the low to mid-range market. The larger number of these models are expected to lower the average selling price of Samsung's smartphones in the upcoming quarter. Tablet shipments will rise 30% from Q2, outperforming the global tablet market.

Thanks to declining prices, some analysts expect to see further growth in smartphone sales in emerging markets off-setting slower sales in developed markets. According to data compiled by Bloomberg, since the beginning of 2012 the average price of a smartphone has declined from $450 to $375. Samsung had 30% of global smartphone sales in 2012 compared to 19% for Apple according to Bloomberg.

"The mobile business, the company’s biggest bread earner, has already peaked out in the first quarter. That is increasing uncertainty over the company’s overall profit growth next year."-Lee Jae Yun, analyst, Kiwoom Securities Co.

"The growth momentum, as seen in the past, is unlikely to be sustained. But since global smartphone penetration currently remains at 49 percent, the volume shipment will continue to increase until it reaches a level of about 70 percent."-Doh Hyun Woo, analyst, Mirae Asset Securities Co. in Seoul

Samsung's mobile division performed well in the 2013 second quarter compared to the same period in 2012

Samsung's mobile division performed well in the 2013 second quarter compared to the same period in 2012


source: Bloomberg, Reuters via Engadget

24 Comments
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posted on 25 Jul 2013, 22:31 14

1. g2a5b0e (Posts: 2715; Member since: 08 Jun 2012)


"Samsung owns this space. Period." -Richard Yarrell

posted on 25 Jul 2013, 22:34 8

3. AnTuTu (Posts: 972; Member since: 14 Oct 2012)


Awesomeness Sammy :) hats off to you and your products what you have bought to the market over the last couple of years.

I hope you'd do even great with your design phase 3.

posted on 25 Jul 2013, 23:25

9. darkkjedii (Posts: 12621; Member since: 05 Feb 2011)


LMAOOOOO Yarrell still clowns on some other sites bro. Dude is straight sprung on Samsung.

posted on 26 Jul 2013, 00:18

10. g2a5b0e (Posts: 2715; Member since: 08 Jun 2012)


Oh, I know. Gotta love the guy's passion. He's one of my favorites. Wouldn't quote him otherwise.

posted on 26 Jul 2013, 00:18

11. joey_sfb (Posts: 3231; Member since: 29 Mar 2012)


Hope they would release their tablet devices with full HD display for their upcoming series.

posted on 26 Jul 2013, 00:27

12. g2a5b0e (Posts: 2715; Member since: 08 Jun 2012)


I agree. Samsung needs to up their tablet game. The Tab 3 series sucks & the Note series doesn't stand out aside from the S-Pen. The Nexus 10 is an awesome device, but that technically doesn't count under their portfolio.

posted on 26 Jul 2013, 02:51 1

17. itsdeepak4u2000 (Posts: 2866; Member since: 03 Nov 2012)


Sammy owns the Galaxy.

posted on 25 Jul 2013, 22:34 5

2. tedkord (Posts: 5263; Member since: 17 Jun 2009)


That's a lot of money.

posted on 25 Jul 2013, 22:52 4

4. 1113douglas (Posts: 192; Member since: 04 Jul 2013)


If the note 3 is the first phone witn a flexible display. Samsung will do amazing in q3.

posted on 26 Jul 2013, 01:00

14. Shatter (Posts: 2031; Member since: 29 May 2013)


Note 3 its still plastic but atleast the screen won't break.

posted on 26 Jul 2013, 07:18 3

21. Googler (Posts: 813; Member since: 10 Jun 2013)


Please, let the iPhone Lite be real so this stupidity about plastic can finally end.

posted on 26 Jul 2013, 08:38 1

22. tedkord (Posts: 5263; Member since: 17 Jun 2009)


It won't. You already see iFans saying that Apple's plastic phone will be premium plastic.

posted on 25 Jul 2013, 23:05 2

5. Jklaz (Posts: 124; Member since: 01 Jul 2013)


if the note 3 pans out to be as great as we hope.. then watch out

posted on 25 Jul 2013, 23:06 2

6. SakuroAkino (banned) (Posts: 141; Member since: 12 Jul 2013)


thats good news
note 3 will make it
nokia.....:D

posted on 25 Jul 2013, 23:15

7. iushnt (Posts: 756; Member since: 06 Feb 2013)


hell lot of money!!

posted on 25 Jul 2013, 23:16 4

8. fanboy (Posts: 38; Member since: 07 Mar 2011)


In sammy we trust

posted on 26 Jul 2013, 00:57

13. number29 (Posts: 185; Member since: 25 Jan 2013)


I really hope Samsung uses some of it's money to build a better OS for their devices. If there's one thing letting Samsung down at the minute, it's their reliance and use of Android.

posted on 26 Jul 2013, 01:01

15. Shatter (Posts: 2031; Member since: 29 May 2013)


Samsung is usuing a lot of that money on Tizen.

posted on 26 Jul 2013, 01:19

16. cam-whore (Posts: 164; Member since: 21 Feb 2013)


but still the results on tizen is disappointing. shows that money differs when it come to genius and innovation...

posted on 26 Jul 2013, 07:06

20. number29 (Posts: 185; Member since: 25 Jan 2013)


That's true, and I hope they spend a lot of time and effort polishing Tizen to Apple levels of quality. I'm looking forward to seeing if it can match or exceed iOS.

posted on 26 Jul 2013, 18:52

24. ph00ny (Posts: 606; Member since: 26 May 2011)


They're not using as much dough on tizen as they are doing with rest of the electronic division

posted on 26 Jul 2013, 03:03 1

18. itsdeepak4u2000 (Posts: 2866; Member since: 03 Nov 2012)


Thinking for the customers, so Sammy won their hearts and gained profits.

posted on 26 Jul 2013, 06:33

19. Sondae (Posts: 194; Member since: 02 Jan 2013)


Well with all the samsung phone line ups from High end to midrange then to low end phone for the costumer who doesnt raise the profit. I hope they dont forget there costumer and the updates in fixing bugs on there phone in the future.

posted on 26 Jul 2013, 12:15

23. Loubielou (Posts: 256; Member since: 11 Jul 2012)


Samsung seem to have learned an solved Nokias faults with there phones,thats why they have taken the Top position away from Nokia in the Mobile Market,an just need to Improve there Support more to keep them in this position,as the updates for phones seem to be to slow,but just can"t wait to See what the Galaxy S5 will offer an Galaxy Note as Well,Even just bought a New Samsung Smart TV an its Truelly Brilliant,Thanks Samsung

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