KOREAN ELECTRONICS GIANT Samsung has posted a record second quarter profit, thanks to bumper sales of its Galaxy smartphones.
Samsung's profit was a record $5.9bn, a year-on-year increase of 79 per cent. As expected Samsung's Mobile Communications business was the driving force behind the company's impressive financial results, as the firm sold over 50 million smartphones in the quarter.
"With the successful launch of this year's flagship Galaxy S III smartphone and robust Galaxy Note sales, the handset unit saw earnings jump by 75 per cent from a year earlier," Samsung said, having shifted 10 million Galaxy S3 handsets in less than two months.
Robert Yi, SVP and head of Investor Relations at Samsung said, "Despite a difficult business environment, we achieved stable profits in the second quarter through our differentiated products and competitive technology.
"As we move into the second half, continued fiscal instability in Europe and its effect on the global economy will result in the possibility of a slower-than-expected recovery and intensified market competition."
"Samsung will enhance the competitiveness of our main businesses and reinforce our value-added, differentiated products as a means to improve earnings."
Neil Mawston, executive director at Strategy Analytics commented on Samsung's record results, saying that although it has extended its lead over Apple it might struggle when the next Iphone makes its debut.
"Samsung shipped 50.5 million smartphones worldwide and captured a record 35 per cent marketshare in the second quarter of 2012.
"Apple grew a modest 28 per cent annually and shipped 26.0 million smartphones worldwide for 18 per cent marketshare, broadly flat compared with 18 per cent recorded a year earlier.
"We believe Apple's lacklustre performance was driven by some Apple fans and operators holding off iPhone purchases in anticipation of a rumoured new iPhone 5 model around September or October this year."
Samsung's share price jumped by as much as 4.7 per cent following the company's earnings call. µ