This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-22305179
The article has changed 5 times. There is an RSS feed of changes available.
Version 1 | Version 2 |
---|---|
Samsung Electronics profits boosted by smartphone sales | Samsung Electronics profits boosted by smartphone sales |
(38 minutes later) | |
Samsung Electronics has reported a 41% jump in profit for the first quarter, boosted by growing smartphone sales. | Samsung Electronics has reported a 41% jump in profit for the first quarter, boosted by growing smartphone sales. |
It made a net profit of 7.15tn won ($6.4bn; £4.2bn) during the period, up from 5.05tn won a year ago. Profits also rose from the previous quarter. | It made a net profit of 7.15tn won ($6.4bn; £4.2bn) during the period, up from 5.05tn won a year ago. Profits also rose from the previous quarter. |
The results are in sharp contrast with rival Apple, which earlier this week reported a drop in quarterly profits for the first time in a decade. | The results are in sharp contrast with rival Apple, which earlier this week reported a drop in quarterly profits for the first time in a decade. |
Samsung displaced Apple as the world's biggest smartphone maker last year. | Samsung displaced Apple as the world's biggest smartphone maker last year. |
Bryan Ma of research firm IDC said that the South Korean firm was doing "very very well right now". | Bryan Ma of research firm IDC said that the South Korean firm was doing "very very well right now". |
"They have a lot of momentum behind what they are doing around phones, and clearly from a consumer perspective, they have a lot of excitement around their devices. | "They have a lot of momentum behind what they are doing around phones, and clearly from a consumer perspective, they have a lot of excitement around their devices. |
"They have a lot of their competitors wondering what they are going to do." | "They have a lot of their competitors wondering what they are going to do." |
'Great strategy' | |
Samsung has enjoyed great success with its smartphone division. | |
According to the latest figures, profits there rose more than 55% to 6.51tn won during the first three months of the year, from a year earlier. | |
Analysts said that a key factor behind Samsung's success is that it offers a much broader range of models than its rival, Apple, which sells only the iPhone. | |
"It has a great strategy of targeting its devices to multiple consumer at multiple price points," Andrew Milroy of Frost & Sullivan told the BBC. | |
Mr Milroy explained that by offering a cheaper range of smartphones Samsung had been able to tap into a bigger share of consumers, especially in the emerging markets. | |
"The hardware Samsung is offering is as good as Apple in the eyes of many," he said. | |
However, Samsung warned that growth in the lower-end smartphone market may slow in the coming months, not least because other manufacturers are also looking to enter the sector. | |
"We may experience stiffer competition in the mobile business due to expansion of the mid-to-low end smartphone market," said Robert Yi, head of investor relations at Samsung Electronics. | |
'Competitor to beat' | |
Samsung's latest smartphone offering, the Galaxy S4, is set to hit the stores on Saturday. | |
The smartphone, launched earlier this year, allows users to control its screen using only their eyes and has the ability to take two different pictures at once. | |
Despite mixed reviews from critics, analysts expect it to generate robust sales. Some have even forecast sales of almost 22 million units in just the second quarter. | |
Meanwhile, Samsung's biggest rival, Apple, is not expected to introduce a new iPhone model at least till the latter half of the year. | |
Many analysts have said that should give Samsung an opportunity to further consolidate its position in the sector. |