Samsung’s Reports Operating Profits Of $7.9 Billion, A Bit Higher Than Even They Expected
Samsung Electronics announced its first quarter revenues of 52.87 trillion won ($47.6 billion) for the quarter ending March 31, 2013. This is a six percent decrease from last quarter. Operating profit was reported at $7.9 billion, a one percent decline quarter-over-quarter from last year’s Q1.
The report, available in a handy PDF, states that the IT and Mobile Communications Division brought in $29.5 billion of that profit, however, which represents a seven percent increase from last quarter.
“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,” said Senior Vice President and Head of Investor Relations, Robert Yi, in a press release.
The earlier guidance put out by Samsung at the beginning of April predicted a profit of 52 trillion won, making these new results glow a little brighter for the Korean electronics company. The report isn’t all glowing, however, as it seems Samsung is interested in tempering any future potential:
“We may experience stiffer competition in the mobile business,” continued Yi, “due to expansion of the mid- to low-end smartphone market while TV growth will continue to wane in developed markets.”
In other words, while all of this profit seems great, there may be even more competition from the likes of HTC, Apple, and other mobile manufacturers in the coming quarter, so watch out.
