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

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.



source: Bloomberg, Reuters via Engadget

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24 Comments

1. g2a5b0e unregistered

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

3. AnTuTu

Posts: 1609; Member since: Oct 14, 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.

9. darkkjedii

Posts: 31018; Member since: Feb 05, 2011

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

10. g2a5b0e unregistered

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

11. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

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

12. g2a5b0e unregistered

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.

17. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

Sammy owns the Galaxy.

2. tedkord

Posts: 17349; Member since: Jun 17, 2009

That's a lot of money.

4. 1113douglas

Posts: 200; Member since: Jul 04, 2013

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

14. Shatter

Posts: 2036; Member since: May 29, 2013

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

21. Googler

Posts: 813; Member since: Jun 10, 2013

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

22. tedkord

Posts: 17349; Member since: Jun 17, 2009

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

5. Jklaz

Posts: 159; Member since: Jul 01, 2013

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

6. SakuroAkino

Posts: 141; Member since: Jul 12, 2013

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

7. iushnt

Posts: 3096; Member since: Feb 06, 2013

hell lot of money!!

8. fanboy

Posts: 38; Member since: Mar 07, 2011

In sammy we trust

13. number29

Posts: 185; Member since: Jan 25, 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.

15. Shatter

Posts: 2036; Member since: May 29, 2013

Samsung is usuing a lot of that money on Tizen.

16. cam-whore

Posts: 164; Member since: Feb 21, 2013

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

20. number29

Posts: 185; Member since: Jan 25, 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.

24. ph00ny

Posts: 2028; Member since: May 26, 2011

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

18. itsdeepak4u2000

Posts: 3718; Member since: Nov 03, 2012

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

19. Sondae

Posts: 291; Member since: Jan 02, 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.

23. Loubielou

Posts: 603; Member since: Jul 11, 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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