For the September quarter results South Korea expects to launch its next model of the Galaxy family before Apple releases its next model of iPhone.
Samsung Electronics reported Friday a record operating profit of 4,800 million euros for the last quarter ended in June due to high sales of mobile phones Galaxy S helped to stretch its lead over its main competitor, Apple.
For the September quarter results South Korea expects to launch its next model of the Galaxy family before Apple releases its next model of iPhone , expected for October. Samsung profits reach about 8 trillion won (5,700 million) . The mobile phone business contributes about 60% of the profits from Samsung.
Proceeds from the mobile phone division has more than doubled over the previous year and the flat screen business increases profits, as LCD prices have stabilized. Shares in Samsung, which also made televisionsand other appliances , flat screens and chips, rose as much as 4.7% to a maximum of five weeks after the results, outperforming the broader market.
“The strong performance of the television division show their resilience to the crisis in the euro area, while the mobile division has become a sack of cash deposit on sales of Galaxy,” said an analyst at Korea Investment Won-seok & Securities.
“The weakness in the prices of memory chips is still the main concern of Samsung in the third quarter, but again does better than some rivals such as Apple, which tends to squeeze suppliers a bit. It’s a small problem compared to the likes of Hynix and Toshiba. going to have less pressure. ”
The director of Samsung Telecommunication Business, JK Shin, told Reuters on Sunday that sales of the Galaxy S III, the most aggressive competitor of the iPhone, had been better than expected, after its launch in late May. Is also preparing a new model of the popular “smartphone” – “tablet” Note Galaxy later this year to cope with the new Apple product launches.
Earlier this year finalizaban 14 year reign of Nokia as the world’s largest maker of mobile phones, but Samsung has increased shipments of smartphones to an estimated 50.5 million in the June quarter, almost double the 26 million iPhones sold. Shipments of Apple in the June quarter fell 26% sequentially, while the European economy sank and consumers expect the launch of the iPhone 5.
“Regardless of the results of Apple, Samsung will be strong in the third quarter,” said analyst Investment & Securities KB Byun Han-joon. “Actually, Samsung, Apple is the stumbling block of a chance.” Analysts estimate that Samsung, which now controls more than a third of the world market of “smartphones” will sell for 15 to 20 million units of the Galaxy S III in the September quarter.