Samsung has surprised analysts by announcing record high sales for the the second quarter this year. This story will be familiar to anyone who saw LGs Q2 profit report. Samsung attributed its huge sales increase not only to greater interest in both mobile phones and TVs, but also to a boost in its memory chip business.
According to Bloomberg, the average expected results for Samsung this quarter was a 24% drop in profits. Instead, the company reports that its sales rose by 16% to a record high, with a net income increase of 5.2% How much of that is attributable to mobile devices and TVs? 82% percent of the global operating income for Samsung, along with 68% of its revenue.
However, in another development that’s similar to LG, Samsung is being careful not to get over-optimistic. Part of the reason Samsung profits were so hight was because South Koreas currency, the Won, was weak. Robert Yi, Samsung’s vice president, warned that a rallying of the currency, combined with intensifying competition in the market, could be problematic in the months to come.
What we think?
Ooops, sorry LG. Looks like plans to overtake Samsung as the worlds second biggest mobile phone producer might have to wait.
