Galaxy sales help push Samsung to quarterly profit record

Samsung has posted a record quarterly profit as surging sales of Galaxy handsets helped Asia's biggest technology company overcome sluggish demand for its televisions.

Net income climbed more than 40 per cent to 7.15 trillion won (HK49.8 billion) in the three months to the end of March, from 5.05 trillion won a year earlier, the South Korean company said yesterday. Sales rose 17 per cent to 52.9 trillion won from 45.3 trillion won.

Demand for Samsung's high-end smartphones, including the flagship Galaxy S4 set for release today, and cheaper feature phones targeted at emerging markets are stoking sales in the US$358 billion market for handsets. Shipments that may be double those of Apple's iPhone are pushing growth in telecommunications, already Samsung's biggest profit driver, and limiting the impact of stalling global demand for televisions.

Heo Pil-seok, chief executive of Midas International Asset Management in Seoul, said: "The numbers are really impressive. Samsung will deliver even stronger earnings in coming quarters, which makes me believe profit for the year will exceed that of Apple."

Investors may not buy on yesterday's news, however, as the company had already reported its preliminary operating profit on April 5, Heo said.

Operating income rose year on year by 54 per cent to 8.78 trillion won from 5.69 trillion won, Samsung said.