Samsung posts $6.43 billion net profit in Q1 as it ships 70 million smartphones

Samsung had a big Q1, with revenues upwards of $47.5 billion USD, while operating and net profit was $7.9 billion and $6.43 billion respectively. While this is down over the previous quarter, in which Samsung posted both record revenues and profits, the results were in line with the company’s guidance and met analysts’ expectations.

The only worrying figure in the scenario is that growth is slowing compared to last year, where revenue and profits grew at a feverish pace. Samsung is concerned that growth will continue to abate, as “stiffer competition in the mobile business,” especially in the low- and mid-range smartphone market, will hit the company’s margins.

But there are 70 million reasons for the company to celebrate, too. That’s how many smartphones Samsung shipped during the first quarter of 2013, representing a massive 32.7% market share. Apple trailed behind at 17.3%, while LG, Huawei and ZTE brought up the rear with 4.8%, 4.6% and 4.2% respectively.

Samsung’s numbers in Q1 2013 grew 11% over the previous quarter, in which the company shipped 63.7 million smart devices, and was up some 60% from the year before. Its success was buoyed by “sound sales” of the Galaxy S3 and Galaxy Note 2, as stated in the press release, but demand for the company’s tablets dropped 30% quarter-over-quarter.

With the Galaxy S4 on the horizon (it’s available in North America for some as early as tomorrow) Samsung is due for a solid Q2, though we’d expect them to address the low- and mid-range market with a cheaper variant of the Galaxy S4 in the coming months.

Source: Korea Newswire, IDC
Via: TechCrunch