Samsung mobile division grows 7pc thanks to Galaxy range


Samsung saw continued strong smartphone and tablet sales in the first quarter of 2013, but the company predicts a tough second quarter

Samsung has announced a seven per cent increase in revenues for its mobile division, although weak sales of computer components impacted overall earnings, which fell by six per cent.

The Korean company’s first quarter results show its IM division, which includes smartphones and tablets as well as its digital imaging business, saw a seven percent increase from the last quarter, to 32.82 trillion won (£19 billion).

Out of the total IM earnings, the mobile business was accountable for 31.77 trillion won (£18 billion) in sales. The IM division saw operating profits of 6.51 trillion won (£3.7 billion) for the quarter.

Although demand for tablets around the world slid 30 percent quarter-on-quarter, Samsung’s Galaxy Tab 2 series continued to sell consistently from the previous quarter, the company said.

Samsung’s total revenues for the first three months of 2013 was 52.87 trillion won (£31 billion), a six per cent decrease from the previous quarter.

The company cited strong smartphone sales and reduced marketing expenses for growth in its mobile division, and weak sales of PC components as one of the reasons for the overall decline in revenues.

Samsung said sales of the Galaxy S III and Galaxy Note II were particularly sound.

However, it said global demand for its smartphones is forecast to dampen in the second quarter “compounded by higher competition”.

“The January-to-March quarter again proved trying on the PC business, while the networks business came around with a stable supply of Long Term Evolution (LTE), fourth-generation (4G) telecommunications equipment,” Samsung said.

Its senior vice president and head of investor relations Robert Yi said: “Although market uncertainties from the European crisis and the slow global economic recovery are still lingering, we expect to increase R&D spending for strengthening our competitiveness ahead of planned new product launches.

“We may experience stiffer competition in the mobile business due to expansion of the mid- to low-end smartphone market while TV growth will continue to wane in developed markets.”