Galaxy S III leads to a £3.8 billion profit quarter for Samsung
Samsung have revealed their earnings for the period covering April-June 2012, and, from the looks of things, the Samsung top brass will be picking up the phone and dialling their local yacht dealership this weekend. They’ve posted a staggering estimated operating profit of 6.7 trillion won (£3.8 billion) in the last quarter.
That’s up 79% over the same period a year earlier.
So what’s helped propel their earnings so high? As well as the Samsung Galaxy S III, their entire mobile and tablet range continues to sell well. The timing of the Galaxy S III launch, appearing to be set perfectly between the iPhone 4S and the assumed Autumn launch window of the iPhone 5, also helped.
However, AV sales and chip manufacture sales dipped slightly.
“Some of its other business units haven’t been doing too well,” analyst Andrew Milroy from Frost and Sullivan told the BBC.
“To some extent, the smartphone business has been masking this. Most of their profits are coming from the smartphone business, so there are clouds on the horizon for some of the other parts of Samsung’s business, for sure.”
Samsung themselves are remaining cautious due to the fall of the Euro’s value against the Korean won. It’s down 5% since April.
“Europe is our biggest consumer electronics market and we may have to initiate cost cuts and product price increases should the euro fall further from the current level,” the company stated.
“Our smartphones are flying off the shelves, with some outlets reporting 40 – 60 per cent sales growth, but that’s distorting the overall trading outlook which is more challenging due to the weak global economy and a weak Euro.”