Samsung may be having some troubles as of late. Despite a win in a patent challenge from Apple (News - Alert), a British judge declared the Korean company's Galaxy Tablet device “not as cool” as Apple's iPad – but the marketplace still likes smartphones. (Nobody has yet declared the Samsung (News - Alert) smartphones less “cool” than Apple's iPhone).
Samsung this week reported another record-high quarterly profit that is largely attributed to brisk sales of the Galaxy smartphones and helping the company cruise past many of its rivals at a challenging time for the global tech industry. The company said its net profit swelled to 5.2 trillion won (about $4.5 billion) in the April to June quarter, which represents a 48 percent jump from a year earlier. The earnings were lower than a median forecast of 5.6 trillion won in a poll of seven analysts by Yonhap Infomax. But Samsung shares jumped 5.2 percent to close at one-month high in Seoul as investors expect its earnings to continue growing strongly, the Associated Press (News - Alert) is reporting.
Healthy sales of Samsung's line of Android (News - Alert)-based smartphones, including the company's flagship Galaxy S3, have helped Samsung avoid a mediocre quarter due to a slowdown in other consumer electronics sectors such as televisions and personal computers that has been painful for its rivals and component suppliers.
Its second quarter operating profit spiked 79 percent over a year earlier to 6.7 trillion won and its revenue rose 21 percent to 47.6 trillion won, matching Samsung's guidance released earlier this month. The operating profit – also at an all-time high – was up 15 percent from the previous quarter, reported the AP.
The third quarter is expected to be positive for Samsung as it takes advantage of the fact that Apple won't release its new iPhone (News - Alert) until later this year.
“The third quarter is expected to be marginally positive as demand for consumer electronics goods, including smartphones and tablets, remains strong and a stream of new products hit the market,” Samsung said in a statement. “Supply for display panels is also expected to increase, as TV makers prepare for the year-end holiday season,” the company explained.