Samsung Q2 profit up 47.5% to $8.5bn

  • Share via facebook
  • Tweet this
  • Bookmark and Share
Samsung's new Galaxy S4 is seen during its unveiling (AFP/Getty Images)

Samsung's new Galaxy S4 is seen during its unveiling (AFP/Getty Images)

Samsung Electronics has reported a 47.5 percent rise in Q2 profits, pushing them to $8.53bn.

The company’s mobile division slipped 3.5 percent as the smartphone market slowed, but profits in this area are still up 52 percent from last year.

Samsung also announced a $1bn increase in investment in the hope a strong recovery in semiconductors will make up for weakening smartphone growth.

"It is clear that the global smartphone market is stalling because of the slowing growth of high-end smartphones and rising competition from lower-priced smartphones," said Ahn Young-hoe, a fund manager at KTB Asset Management, which owns Samsung shares.

"There is no major momentum for Samsung. The key is whether Samsung, which sources smartphone parts in-house unlike Apple, will be able to cut parts costs and increase volume and market share to offset reduced smartphone margins."

Samsung warned that smartphone sales could weaken further in the third quarter, but other parts of the South Korean giant’s business continue to perform well, with profits from memory chips rising 71 percent to $1.6bn.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Dubai's smart palm tree technology revealed

Dubai's smart palm tree technology revealed

Smart Palms harness the sun's energy to allow people to look...

Revealed: the best Dubai Twitter accounts to follow

Revealed: the best Dubai Twitter accounts to follow

Live in Dubai and hoping to get in on the Twitter buzz? Here...

How to get the most out of social media, by Obama's 2008 campaign manager

How to get the most out of social media, by Obama's 2008 campaign manager

David Plouffe is credited with Barack Obama’s unlikely 2008 victory...

Most Popular
Most Discussed