SEOUL, South Korea – Samsung, the world's largest technology company by revenue, reported another record-high quarterly profit as customers flocked to Galaxy smartphones, helping it outdo rivals at a challenging time for the global tech industry. Samsung Electronics Co. said Friday its net profit swelled to 5.2 trillion won ($4.5 billion) in the April-June quarter, a 48 percent jump from a year earlier. Samsung, the world's largest maker of mobile phones, televisions and memory chips, benefited from runaway demand for its Android-powered smartphones as rivals including Apple Inc. were yet to release new models. The robust sales of smartphones such as the company's flagship Galaxy S3 helped Samsung paper over a slowdown in other consumer electronics sectors such as televisions and personal computers that has been painful for its rivals and component suppliers. Its second quarter operating profit spiked 79 percent over a year earlier to 6.7 trillion won and its revenue rose 21 percent to 47.6 trillion won, matching Samsung's guidance released earlier this month. The operating profit, also at an all-time high, was up 15 percent from the previous quarter. Its display panel division beat analyst predictions, reporting sales of 8.25 trillion won ($7.25 billion), a 16 percent increase year-on-year, thanks to strong sales of "value-added products" like 3D and LED TVs. Despite nagging worries about debt-crippled Europe, analysts are expecting Samsung to achieve a record-high profit in the third quarter when Galaxy S3 sales are expected to reach a peak before Apple unveils its new iPhone, anticipated in October. "The third quarter is expected to be marginally positive as demand for consumer electronics goods, including smartphones and tablets, remains strong and a stream of new products hit the market. Supply for display panels is also expected to increase, as TV makers prepare for the year-end holiday season," Samsung said in a statement. In a conference call, Samsung's mobile communications vice president Kim Hyun-joon said growth in global smartphone sales will not be affected by an economic slowdown. Sales of Samsung's smartphones in China increased significantly and the company expects to sustain mobile growth through expansion in emerging markets, he said. The increase in smartphone sales, the S3 as well as the Galaxy Note, will also boost sales of Samsung's mobile processors, helping the company counter weak demand for computer memory chips, analysts said. In the second quarter, Samsung's mobile division, which makes smartphones, personal computers and network equipment, contributed 63 percent of Samsung's entire operating profit by generating 4.2 trillion won profit. Research firm IDC said Samsung shipped 50.2 million smartphones in the April-June quarter, widening its lead over Apple. Apple, which earlier this week reported earnings that fell short of expectations, sold 26 million iPhones in the three month stretch. – Agencies
