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Samsung Announces Profits To Double For Q1 2012

Samsung has announced that it expects its profits to double up for the first quarter of this year.

An operating profit of £3.2 billion is the figure the company is predicting, boosted mainly by its highly successful Android smartphones, in turn spearheaded by the Galaxy S range. Apparently the prediction of revenue was pretty much in line with what had been thought previously, but margins were considerably healthier.

Choi D-Yeon of LIG Investment & Securities told the BBC: "There was a big surprise in profit, while revenue was in line, which suggests a stronger-than-expected profit margin from the handset division thanks to robust sales of high-end models like the Galaxy S and Note."

"Handset margins are estimated to have topped 20% and profits from the division also topped 4tn won."

While Samsung's smartphones have been a big success, it has struggled more in other spheres, such as memory chips.

Remember that these figures are still estimates, though, and won't be confirmed until the end of the month when the official bean counting has been done.

Samsung appears to be well placed to continue its success, given that the Galaxy S III looks very much a tempting piece of hardware from what we've seen thus far. Yes, it'll be up against the iPhone 5, but it should have a head-start in the market, and seems well equipped for battle.

Perhaps the biggest danger isn't from Apple's smartphones, but the Cupertino company's lawyers, who are constantly threatening to disrupt sales with injunctions around the globe.

Source: BBC