Samsung profits soar as Galaxy S4 hits stores

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Thumbnail image for samsung galaxy s4 sunsetSamsung’s rolling in the dough, with profits revealed to be rising 55% in their Q1 2013 earnings call. And the Samsung Galaxy S4 is only just going on sale!

Samsung have filed a massive $7.9 billion (just over £5 billion) profit in the last 90 days, with strong smartphone sales making up the bulk of the profits.

“Highlighting the quarterly performance, the IT & Mobile Communications (IM) Division which comprises the Mobile Communications, Networks, and Digital Imaging businesses, achieved profitable results backed by strong smartphone sales coupled with reduced marketing expenses,” reads the company statement on the results.

“Sound sales of GALAXY S III and GALAXY Note II devices aided profit margins for Mobile Communications.”

However, Samsung are warning investors to keep expectations realistic, even with the launch of the Galaxy S4 looming, with the company expecting smartphone sales to “dampen” due to “heightened competition”. Likewise, while smartphone sales are soaring, other areas of the company aren’t doing quite as well.

“The January-to-March quarter again proved trying on the PC business,” Samsung admitted.

“Demand for consumer electronics products in emerging markets stemmed further sales losses but weak seasonality and a sluggish economy took their toll on Samsung’s sales of TVs and home appliances.”

For a full look at Samsung’s earnings breakdown, click here.

Gerald Lynch