Samsung forecasts record quarterly profit


Despite the launch of new models there had been some concerns over Samsung’s growth rate slowing

Samsung Electronics, the world’s biggest mobile phone and TV maker, has forecast record profits for the July-to-September quarter.

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It expects operating profit of 10.1 trillion won ($9.4bn; £5.8bn) for the quarter, a 25% jump from a year ago.

The profit guidance beats many analyst forecasts.

Samsung has enjoyed tremendous success with its Galaxy range of smartphones, but there had been concerns recently that its growth rate may be slowing.

“The company is doing a phenomenal job of continuing its growth rate,” said Andrew Milroy, an analyst with consulting firm Frost & Sullivan.

“One would have expected that its growth rate may be hit by the emergence of other cheaper mobile phone makers.

“But it doesn’t seemed to have happened, at least not yet,” he added.

‘Smart enough’

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Samsung realises that growth opportunities in emerging markets are key to overall success of their business, and they have been smart enough to tap into it”

Andrew Milroy Frost & Sullivan

The success of its Galaxy range of smartphones has seen Samsung become the leading player in the global mobile phone market.

Analysts say the company’s policy of catering to the low and high-end segments of the market has proved particularly effective.

Samsung has launched top-end products such as the Galaxy S4 in a bid to take on the likes of Apple’s iPhone.

It has also introduced low-cost smartphones targeted at customers in emerging markets such as India and China.

Many mobile phone operators in those markets do not subsidise phones, making low-cost devices a much more attractive option for many consumers.

“Samsung realises that growth opportunities in emerging markets are key to overall success of their business, and they have been smart enough to tap into it,” said Mr Milroy.

“They have covered both ends of the spectrum really well.”

Bendy and curved

Last month, Samsung said that it is planning to launch handsets with curved displays.

It exhibited prototype products with bendy and extendable screens in January this year, but there are doubts as to how this technology can be mass-produced cheaply and reliably.

The firm also launched a smartwatch, the Galaxy Gear, last month – beating Microsoft, Apple and Google in the race to bring this type of technology to market.

The smartwatch has a colour screen that can show alerts, be used for voice calls and run apps.

Babatunde Akinsola
Babatunde Akinsola
Babatunde Akinsola is aNaija247news' Southwest editor. He's based in Lagos and writes on the Yoruba Nation political issues, news and investigative reports

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