Another Record Quarter for Samsung

Net profit at Samsung was 7.8 trillion won (£4.5bn) in Q2 2013, a 50 per cent increase on a year ago, another record quarterly profit for the tech giant.

While profits in its mobile division – which contributes two thirds of the company’s total earnings – were up 52 per cent year-on-year, a 3.5 per cent drop from the previous quarter did not go unnoticed.

“As we go into a typically strong season for the IT industry, we expect earnings to continue to increase,” Samsung said in its earnings statement. “However, we cannot overlook delayed economic recovery in Europe and risks from increased competition for smartphones and other set products.”

But Samsung is still by far the largest smartphone manufacturer in the world, with IDC’s latest figures showing it holds a 30.4 per cent market share, shifting 72.4m devices in Q2 2013. This represents a 43 per cent increase on the same time a year ago. Apple shipped a total of 31.2m smartphones, giving it 13 per cent market share. Third place LG shifted 12.1m, giving it 5.1 per cent of the global mobile market.

Commenting on what the results mean for marketers, Gareth Davies, co-founder and CEO of Adbrain, said: “While the tech giant failed to meet its ambitious forecasts, this is no sign that Samsung is failing – it remains the world’s largest smartphone manufacturer and operating profits are higher than ever.

“Advertisers should no longer view Apple as ‘premium’ and Android as ‘low end’. Android is becoming a higher value operating system and a more powerful way to reach consumers – not least due to the increased number of ad impressions and inventory available,” he said.

Davies believes that Samsung will yet have the next-generation of devices that people, and analysts, are looking for. “As Samsung continues to expand its multi-screen strategy, and as it continues to develop products which integrate payments and loyalty into its devices, it will only continue to get closer to consumers. Advertisers need to understand this and realise the link between multi-screen technology – from how people are using mobile to PCs – to deploy more efficient and targeted campaigns to consumers.”