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Samsung leads smartphone charge as mobile revenues jump 50%

Shipments outpacing Apple by a distance

Samsung leads smartphone charge as mobile revenues jump 50%
Samsung (005930.KS) has been branded the world's most profitable smartphone manufacturer, ahead of Apple, after net profits hit 7.8 trillion won (around $7 billion) in Q2 2013.

Though the figure is a company wide one, Samsung has cited the performance of the firm's flagship smartphone – the Galaxy S4 – as a key driver, with mobile revenues up more than 50 percent year on year to 6.28 trillion won ($5.6 billion).

Though the Korean giant doesn't publish shipment figures, the release of the firm's financials has been coupled with an IDC estimates, suggesting Samsung shipped 72.4 million smartphones in Q2 2013.

That puts it easily ahead of Apple, which shipped 31.2 million devices in comparison.

Continued growth

Despite its market leading position, however, Samsung has warned the current economic climate may hinder its growth in future quarters.

Robert Yi, head of investor relations, said the firm "hoped to continue the strong growth in the coming quarters, but could not rule out being affected by ongoing economic issues across the globe."



"We expect to improve profit yields in the second half due to high-margin, differentiated component products, as well as gains stemming from increased smartphone and TV shipments," he added.

"[However] we cannot overlook delayed economic recovery in Europe and risks from increased competition for smartphone and other set products."

Mobile domination

Nevertheless, market analysts have suggested that the enormous profits Samsung enjoyed in Q2 point to a huge rise in the profitability of the firm's smartphone devices.

"We estimate Samsung's operating profit for its handset division stood at $5.2bn in the second quarter of 2013," said Neil Shah, senior analyst at Strategy Analytics.

"Samsung overtook Apple for the first time, which recorded an estimated iPhone operating profit of $4.6bn.

"With strong volumes, high wholesale prices and tight cost controls, Samsung has finally succeeded in becoming the handset industry's largest and most profitable vendor."

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