Samsung Electronics profit up before Galaxy S4 debut

SEOUL Fri Apr 26, 2013 5:23am IST

Lee Don-joo, head of sales and marketing at Samsung's mobile business, demonstrates Samsung Electronics Co Ltd's latest flagship smartphone S4 during its launch event at the company's headquarters in Seoul April 25, 2013. REUTERS/Kim Hong-Ji

Lee Don-joo, head of sales and marketing at Samsung's mobile business, demonstrates Samsung Electronics Co Ltd's latest flagship smartphone S4 during its launch event at the company's headquarters in Seoul April 25, 2013.

Credit: Reuters/Kim Hong-Ji

Related Topics

Stocks

   

SEOUL (Reuters) - Samsung Electronics Co Ltd reported on Friday its sixth straight quarter of profit growth ahead of the debut of its latest Galaxy smartphone, the South Korean IT giant's biggest assault on rival Apple Inc (AAPL.O) yet.

By launching the Galaxy S4 in the United States on Saturday, Samsung is taking aim at Apple's home market at a time when the iPhone maker appears to have hit a snag. Earlier this week, Apple reported its first profit decline in more than a decade and indicated no major product releases until the fall.

Samsung is widely expected to resume posting record quarterly profits, after a hiatus in January-March, as the S4 is dispatched to 327 mobile carriers in 155 countries.

This week, Samsung has kicked off a massive advertising campaign for the S4 and set up mini stores at Best Buy BBY.O locations to promote the smartphone. Initial orders have surprised on the upside, with the firm expecting a short-term supply crunch.

Early success of the S4 is crucial in determining the extent of the expected second-quarter record earnings for a company that gets more than 70 percent of its overall profit from mobile devices.

The new S4, which sports a host of software-enabled features, is seen as stealing a head-start on what's widely expected to be an upgraded iPhone later this year. But the Galaxy phone has drawn mixed reviews so far.

Profit from Samsung's mobile division jumped 56 percent to a record 6.51 trillion won in the first quarter, accounting for nearly three quarters of the firm's entire profit, the company said on Friday, before the stock market open.

Samsung, which doesn't provide smartphone sales figures, likely sold 68-70 million smartphones in the quarter ended March, up from 63 million in the previous quarter, according to five analysts.

By contrast, second-ranked Apple said on Tuesday it shipped 37.4 million iPhones in the March quarter, up from 35.1 million a year ago, but down sharply from 47.8 million in the previous quarter.

Samsung's first-quarter overall operating profit increased 54 percent from a year ago to 8.8 trillion won, broadly in line with its earlier estimate and almost on par with the fourth-quarter's record of 8.84 trillion won.

Shares in Samsung, valued at around $215 billion, have risen 2 percent in the past three months, beating a 21 percent decline in Apple and a 1 percent drop in the wider market .KS11.

(Reporting by Miyoung Kim; Editing by Ryan Woo)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Moody's on Inflation

Moody's on Inflation

Persistent inflation hurting India's sovereign ratings - Moody's  Full Article 

Carmichael Project

Carmichael Project

Adani buys Australia coal mine royalty rights from Linc for $145 million  Full Article 

GDP Preview

GDP Preview

Economy likely grew faster in June quarter: Reuters poll.  Full Article 

India-Japan Meet

India-Japan Meet

Modi eyes breakthrough nuclear pact on Japan trip   Full Article 

Monetary Policy

Monetary Policy

BofA says RBI may cut rates by 75-100 bps starting early 2015  Full Article 

Road to IPO

Road to IPO

Mega-IPO to rekindle the 'bromance' behind Alibaba's rise  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage