It’s an excellent start of the year for Samsung Electronics, as the company has announced an operating profit of 8.78 trillion won, that’s USD$7.9 billion, in just the first quarter of 2013.
This is pretty much the same as Samsung’s Q4 2012 profit of $8.27 billion and just about beats out the company’s profit forecast of $7.75 billion. The company’s total revenue came to 52.87 trillion won ($47.6 billion), resulting in a net profit of 7.15 trillion won ($6.45 billion). So you’re probably feeling quite happy if you own Samsung stock.
Samsung stated that strong smartphone sales combined with a reduction in its marketing costs was one of the leading causes of its quarterly success. But I suppose such a decent turnover isn’t surprising considering that the company sold 3 out of every 10 smartphones last quarter, and still holds an impressive 30% share of the smartphone market.
On the downside Samsung’s revenues experienced a slight slump over the winter period, with a 6 percent decline in cash takings than in the previous quarter. Samsung puts this down to a sluggish economy, which it claims resulted in lower than expected TV and home appliance sales. The company is also expecting a more competitive market in the mid and budget smartphone ranges, thanks to rivals launching a wider range of competing handsets.
Of course we’re still waiting to see how the launch of the Galaxy S4 will affect Samsung’s profit levels, I’m sure it will most certainly make Samsung’s bottom line look even healthier. But we’ll have to wait for the Q2 2013 financial results for that.