Beating its own guidance of $8.3 billion profit for the June quarter, Samsung has posted a record operating profit of $8.6 billion. That is much higher than what was posted by Microsoft, Apple or Google. The net profit for the company stood at close to $7 billion, slightly ahead of Apple’s $6.9 billion in net income.
The revenue for the second quarter was $51.7 billion dollars, up from $47.5 billion last quarter. The consumer electronics division raked in a revenue of $11.5 billion, while the mobile division brought in $31.11 billion alone. However, the profits from the mobile (and IT) division were down 3 percent from last quarter at $5.65 billion (though it still made up the majority of Samsung’s profits). This was the first quarter in which Galaxy S4 was selling in the market, and though the phone crossed 20 million in sales by the end of June, it couldn’t help in the growth of profitability. One possible reason could be increasing costs due to excessive marketing that the phone has received over the past few months as well as the growing competition.
Low PC shipments hurt the semiconductor business, however, mobile memory and SSD demand continued to flourish. The display division also saw growth last quarter due to increased demand coming from markets like China. Samsung also saw increased tablet demand in emerging markets, while it was down in the developed market.
Samsung expects the growth in tablets and mobiles to continue going forward, however, it has warned of the increased competition.