Samsung has announced a 42 per cent profit rise for the first quarter of 2013, just 24 hours before its flagship Samsung Galaxy S4 smartphone launches.
First-quarter profits for the South Korean electronics manufacturer soared to record highs, bolstered by strong smartphone sales despite the imminent arrival of the Samsung Galaxy S4.
Samsung Electronics’ net profit for Q1 2013 rose by 42 per cent to 7.2 trillion won (£4.19 billion) this quarter, up from 5 trillion won (£2.91 billion) the same time last year. Such a figure was still achieved despite an estimated $600 million (£389 million) court settlement paid to Apple from the court battles.
Also excelling in other areas, Samsung posted a 17 per cent increase in revenue to 52.9 trillion won (£30.8 billion) and operating profit was up 54 per cent to 8.8 trillion won (£5.12 billion).
However, the majority of Samsung’s profits were from the company’s strong mobile division, which posted a 56 per cent increase equating to a record winning 6.51 trillion won (£3.8 billion).
The Samsung Galaxy S4 release date is tomorrow and the Android powerhouse looks set to be strong against rivalling handsets like the Sony Xperia Z, HTC One and iPhone 5.
In contrast to Samsung’s impressive gains, Apple’s first quarter profits showed slowing growth for the first time in ten years.
Samsung recently overtook Apple to become the market leading smartphone manufacturer, displacing the iPad mini manufacturer as the world’s biggest.
The South Korean firm is doing “very very well right now”, said Bryan Ma of research firm IDC. “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.”