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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 (opens in new tab)

Darren Allan

Darran has over 25 years of experience in digital and magazine publishing as a writer and editor. He's also an author, having co-written a novel published by Little, Brown (Hachette UK). He currently writes news, features and buying guides for TechRadar, and occasionally other Future websites such as T3 or Creative Bloq and he's a copy editor for TechRadar Pro. Darrran has written for a large number of tech and gaming websites/magazines in the past, including Web User and ComputerActive. He has also worked at IDG Media, having been the Editor of PC Games Solutions and the Deputy Editor of PC Home.