Operating profit jumps 47 percent over a year ago, but profit from the South Korean electronics giant's mobile division declined 3.5 percent from previous quarter. July 25, 2013 5:35 PM PDT Samsung lauded sales of its Galaxy S4 in the second quarter. (Credit: CNET ) Samsung on Thursday posted another record quarterly operating profit that was marred by a slight recession in its mobile business. The South Korean electronics giant's second-quarter operating profit for the period ended June 30 was 9.53 trillion won ($8.5 billion), an increase of 47 percent over a year ago. Although the results were in line with company guidance issued earlier this month, analysts had been expecting an operating profit of 10.1 trillion won ($8.8 billion). However, while operating profit from Samsung's mobile division, the company's primary revenue source, rose 52 percent to 6.28 trillion won ($5.6 billion) from a year ago but declined 3.5 percent from the previous quarter. Samsung, which released the GS4 in April, boasted in May of having sold more than 10 million units to retailers and wireless operators less than a month after the handset's debut. However, worries that the company's flagship smartphone was nearing market saturation led more than a dozen analysts cut their earnings projections for the smartphone maker last month. Related stories Samsung Galaxy S4 Zoom versus Nokia Lumia 1020 Inside Scoop: New rumors on Nexus tablet, Moto X phone Samsung updates Exynos 5 Octa with double the graphics processing "Entering into a typically strong season for the IT industry, we expect earnings to continue to increase," Robert Yi, head of investor relations at Samsung, said in a statement. "However, we cannot overlook delayed economic recovery in Europe and risks from increased competition for smartphone and other set products." Before a slight decline in the first quarter, Samsung had posted a string of five consecutive quarters of record profits. Apple, Samsung's chief rival in the mobile industry, revealed Tuesday that it sold 31.2 million iPhones in its fiscal third quarter, a solid achievement compared with the 26 million units it sold in the year-ago quarter but a decline from the second quarter of the year, when Apple shipped 37.4 million of its smartphones. Looking forward, Samsung could also get a boost in the third quarter from contracts it's reportedly near closure on to supply devices to the FBI and Navy -- it's first reported deals with U.S. government agencies since winning Pentagon security approval earlier this year. Formerly the exclusive territory of BlackBerry, lucrative U.S. government contracts were opened up to other device makers by the Pentagon earlier this year.
Operating profit jumps 47 percent over a year ago, but profit from the South Korean electronics giant's mobile division declined 3.5 percent from previous quarter.
Samsung lauded sales of its Galaxy S4 in the second quarter.
(Credit: CNET )
Samsung on Thursday posted another record quarterly operating profit that was marred by a slight recession in its mobile business.
The South Korean electronics giant's second-quarter operating profit for the period ended June 30 was 9.53 trillion won ($8.5 billion), an increase of 47 percent over a year ago. Although the results were in line with company guidance issued earlier this month, analysts had been expecting an operating profit of 10.1 trillion won ($8.8 billion).
However, while operating profit from Samsung's mobile division, the company's primary revenue source, rose 52 percent to 6.28 trillion won ($5.6 billion) from a year ago but declined 3.5 percent from the previous quarter.
Samsung, which released the GS4 in April, boasted in May of having sold more than 10 million units to retailers and wireless operators less than a month after the handset's debut. However, worries that the company's flagship smartphone was nearing market saturation led more than a dozen analysts cut their earnings projections for the smartphone maker last month.
Related stories
- Samsung Galaxy S4 Zoom versus Nokia Lumia 1020
- Inside Scoop: New rumors on Nexus tablet, Moto X phone
- Samsung updates Exynos 5 Octa with double the graphics processing
"Entering into a typically strong season for the IT industry, we expect earnings to continue to increase," Robert Yi, head of investor relations at Samsung, said in a statement. "However, we cannot overlook delayed economic recovery in Europe and risks from increased competition for smartphone and other set products."
Before a slight decline in the first quarter, Samsung had posted a string of five consecutive quarters of record profits.
Apple, Samsung's chief rival in the mobile industry, revealed Tuesday that it sold 31.2 million iPhones in its fiscal third quarter, a solid achievement compared with the 26 million units it sold in the year-ago quarter but a decline from the second quarter of the year, when Apple shipped 37.4 million of its smartphones.
Looking forward, Samsung could also get a boost in the third quarter from contracts it's reportedly near closure on to supply devices to the FBI and Navy -- it's first reported deals with U.S. government agencies since winning Pentagon security approval earlier this year. Formerly the exclusive territory of BlackBerry, lucrative U.S. government contracts were opened up to other device makers by the Pentagon earlier this year.
