Samsung reports record profits as Galaxy S3 leads smartphone bonanza

Samsung has posted a record operating profit for the year’s second quarter, having brought in 6.72 trillion won (£3.75 billion) from a total revenue of 47.6 trillion won (£26.6 billion).

The reported profits, up 79 per cent from the same time last year, were largely the result of the company’s successful smartphone push. Samsung said its mobile business, boosted by the May release of its flagship Galaxy S3 smartphone, accounted for more than two-thirds of its operating profit.

Research firm Juniper estimates Samsung sold more than 50 million smartphones in the April - June quarter, double that of Apple’s 26 million iPhones moved during the same time period.

In addition to rising smartphone sales, favourable conditions in the display component market helped other parts of its business perform well, too. Samsung is the world’s leader in television sales and also a supplier of LCDs panels, used in devices like touch-screen smartphones.

Accordingly, the company’s stock rose 4.3 per cent after the announcement. Samsung’s shares have grown by nine per cent this year, while the overall market has seen a three per cent drop.

But mobile is its big winner, and analysts expect its third quarter to carry on the trend of raking in record profits. Consumers will likely continue to snap up Samsung smartphones ahead of the release of Apple’s next-generation iPhone, expected to launch at some point in the autumn, analysts have said.

Between them, Samsung and Apple control more than half of the world’s smartphone market, as other manufacturers like Nokia and RIM struggle to compete. However, things could take an interesting turn when the two smartphone giants come head-to-head in a California courtroom on 30 July, as one of many of their patent infringement cases finally goes to trial.