Tech giant Samsung has recorded huge profits for the second quarter of this year, spurred on by the huge success of the Galaxy S3.
The South Korean manufacturer has announced operating profits of a whopping $5.9 billion for the quarter – a record for the company.
While the profit margin is huge, not many in the industry will be too surprised by the record achievement.
Galaxy S3 driving Samsung mobile business
The Galaxy S3, the critically acclaimed follow-up to the hugely popular S2, has been a runaway success since it was released earlier this year.
The device has now passed the 10 million worldwide sales mark, and shows no sign of slowing down. Its success has made Samsung’s mobile division responsible for 60% of the company’s earnings.
“Solid results from the TV division show its resilience to the euro zone crisis, while the mobile division has become a strong cash cow on the back of strong Galaxy sales,” said Seo Won-seok, an analyst at Korea Investment & Securities.
“Weak memory chip prices remain the biggest concern for Samsung in the third quarter, but it will again fare better than rivals as its reliance on Apple, which tends to squeeze suppliers quite a bit, is small compared to the likes of Hynix and Toshiba. It’ll have less margin pressure.”
Samsung vs Apple
The success of the Galaxy S3 looks only set to continue in the coming months, before the next iPhone from Apple is released.
Expected to hit the shops at some point in September or October, the iPhone 5 looks set to be one of the most anticipated Apple devices in a long time.
Samsung still lags behind Apple in the net profit stakes, with Apple recording a bumper $8.8 billion last quarter.
But with Samsung’s mobile business going from strength to strength, the gap between the two companies could start to shrink even more.
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