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Samsung Electronics profits boosted by smartphone sales | Samsung Electronics profits boosted by smartphone sales |
(about 4 hours later) | |
Samsung Electronics has posted a record quarterly profit, boosted mainly by growing sales of its smartphones. | Samsung Electronics has posted a record quarterly profit, boosted mainly by growing sales of its smartphones. |
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 Korean firm's results are in sharp contrast with rival Apple, which 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' | 'Great strategy' |
Samsung has enjoyed great success with its smartphone division. | 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. | 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. | 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. | "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. | 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. | "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. | 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. | "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' | 'Competitor to beat' |
Samsung's latest smartphone offering, the Galaxy S4, is set to hit the stores on Saturday. | 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. | 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. | 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. | 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. | Many analysts have said that should give Samsung an opportunity to further consolidate its position in the sector. |