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Samsung profits double from smartphone boost

May 03, 2012 By: Dr Search Principal Consultant at the Search Clinic Category: Apple, Customer Service, Ecommerce, Mobile Marketing, mobile phones, Samsung, smart phones, Technology Companies, Uncategorized

Samsung Electronics has said it’s profit for the first three months of the year to almost double as its smartphone sales continue to grow.Samsung profits double from smartphone boostThe company said it expects an operating profit £3.2 billion (5.8tn won) for the period.

The success of Samsung’s Galaxy range has seen it become the world’s biggest selling smartphone maker.

Analysts said the firm had benefited from keeping its margins healthy, despite growing competition.

With memory chip prices rising, chips will play a big part in second quarter profits. Expectations for operating profit will reach somewhere between 6.5tn to 7.5tn won.

While Samsung’s phone unit has prospered, other divisions, including memory chip manufacturing, have been going through a tough time.

Prices for memory chips have been falling globally, not least due to oversupply.

Analysts said that natural disasters last year in Japan and Thailand had resulted in a fall in production of various electronics products, which use these chips, resulting in high inventory levels putting pressure on prices.

At the same time, slowing demand from key markets such as the US and Europe hurt chipmakers.

However, analysts said that as the global economy recovers and supply chains in the region get back on track, chip prices were likely to recover, boosting Samsung’s profits further.

While the company is expected to grow further, analysts warned that Samsung will have to overcome potential hurdles on the way.

To begin with, it will have to fend off competition from its biggest rival Apple, they said.

The fear is that increased competition may force Samsung to lower its prices in a bid to attract customers, a move which, if implemented, would impact on its profit.

At the same time, Samsung is also involved in a legal battle with Apple over patents involving technology it uses in its smartphones and tablet PCs.

1 Comments to “Samsung profits double from smartphone boost”

  1. Hildegarde Camarillo says:

    Can’t remember where I read it, but a shorthand substitution for “social justice” is “envy”. I’ve found that it’s pretty much accurate. Jack, your article buttresses that belief and gives me some additional firepower thanks! (You’re pretty smart for a Tribble … 8^)