Samsung Profit Increases 42% In First Quarter (PINK:SSNLF)

samsungSamsung Electronics reported that its net income in the first quarter increased by 42 percent over the same quarter last year. The company’s net income reached 7.2 trillion won ($6.5 billion) in the quarter, up from 5 trillion won a year earlier. This was also a 2 percent increase from the previous quarter. Operating profit increased 54 percent to 8.8 trillion won ($7.9 billion).

Analysts had expected lower profit than the fourth quarter because demand typically slows. This quarter is traditionally a slow season for the electronics market. Many people make their electronics purchases during the holiday season or right after when many older models of electronics are on sale.

The increase in income was attributed to robust smartphone sales. Sales of Samsung’s flagship smartphone, the Galaxy S III, and the oversize handset device called the Galaxy Note remained strong and shored up profit. Sales jumped 17 percent to 52.9 trillion won ($47.5 billion). The company spent less on marketing for its mobile devices than it had in the previous quarter.

Samsung’s wide range of mobile devices has been very successful in the industry. The company has been able to capitalize on the global demand for smartphones by creating devices that come in a variety of screen sizes and price ranges. The company has been outpacing its rivals, including Apple and Nokia, in sales with its line of devices. Samsung is currently the world’s largest smartphone maker.

During the April-June quarter, analysts expect Samsung to report a stronger profit. The latest iteration of the Galaxy S smartphone, the Galaxy S4, will go on sale worldwide in the second quarter. It will be available months before Apple introduces its new version of the iPhone. The new Samsung phone has already been released in South Korea.

The initial orders for the Galaxy S4 have been higher than expected. Samsung said that this has been making it difficult for the company to meet demand. The head of sales and marketing at Samsung’s mobile division Lee Don-joo said sales of the S4 would be higher than the sales of its predecessor.

Samsung’s I.T. and mobile communications division reported 6.5 trillion won ($5.8 billion) in operating income for the first quarter.  This was up 56 percent over the previous year and its highest since Samsung reorganized the division. The I.T. and mobile communications division makes smartphones, tablets, PCs and cameras.