Samsung Posts Record Quarterly Profits Figure

Samsung has posted a record quarterly profit as its second quarter income jumped by 50% to KRW 7.77 trillion (US$6.9 billion).

The company said that the profits were boosted by strong sales in both smartphones and the display panels divisions. It did however warn that smartphone sales growth may start to slow in the future as the market reaches its peak and competition intensifies.

“The strong growth streak for the smartphone market is expected to continue in the third quarter, albeit at a slower pace,” Samsung said in its statement.

Analysts had expected a stronger performance from the smartphone division than it actually delivered.

Revenues also rose, although by a smaller margin to KRW 57.46 trillion from KRW 47.6 trillion a year ago.

The company also posted an improvement in the operating profit at its semiconductor division which supplies chips for its own smartphones as well as to rival companies. It plans a US$1 billion investment in the division to boost sales and offset a possible weakening of its smartphone division.