Samsung posts record profits for Q2 driven by Galaxy sales

Samsung, the largest technology company in the world by revenue, has announced a record net profit of £4.5 billion for the last quarter.

The company said that strong sales of its Galaxy smartphones and tablets pushed the growth. In this quarter Galaxy sales have now for the first time overtaken iPhone sales.

"Entering into a typically strong season for the IT industry, we expect earnings to continue to increase," said Robert Yi, Samsung's senior vice president and head of investor relations.

He did however issue a warning: "We cannot overlook delayed economic recovery in Europe and risks from increased competition for smartphone and other set products.

"We expect to improve profit yields in the second half due to high-margin, differentiated components products, as well as gains stemming from increased smartphone and TV shipments," he added.

Despite the record breaking figure, which represent a 47.5 per cent year-on-year rise, operating profit was in fact slightly lower than analysts had forecast. Whilst a £5.84 operating gain had been expected, £5.57 billion was posted.

Commenting on the news, Markellos Diorinos, head of engagement management at mobile solutions firm Upstream said: "Companies are always criticised when they don't meet their forecasts, even if they achieve record profits. However, the fact that Samsung's mobile division is down 3 per cent quarter on quarter in a growing market is quite significant.

"Although Samsung has predicted slower growth for its smartphone shipments in Q3, this should not be seen as a predictor of its future success. In fact, it is still in good position to bolster its market share by making focussing more on its devices that cater to emerging markets – where Samsung is currently the brand of choice."

Image credit: Flickr (vernieman)