Samsung profits rise 41.5 per cent

Huge growth in smartphone division sees profits rise at Galaxy S4 maker

 

Samsung has seen its profits increase by 41.5 per cent on the back of strong demand for its smartphones.

It made a net profit of W7.15tn (£4.2bn) during the last three months. That compared to a profit of W5.05tn (£2.93bn) the same time last year.

Profits were also up on the previous quarter.

Its smartphone division is driving much of the growth.

According to the latest figures, W6.51tn (£3.78bn) was generated by the division in the last three months.

Speaking to the BBC, Bryan Ma of IDC said Samsung 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," he added.

"They have a lot of their competitors wondering what they are going to do."

Analyst Andrew Milroy of Frost & Sullivan said that the reason it is beating Apple is because of it offering more than just one device.

"It has a great strategy of targeting its devices to multiple consumer at multiple price points," he said. "The hardware Samsung is offering is as good as Apple in the eyes of many."

However, investors may not be as impressed.

Recent figures have shown that Apple's much more focused supply chain – enabled by its tightly focused product line – is the key factor behind its much larger share of smartphone profits.

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