Record revenues and profits for Samsung Electronics in Q2 2013

SamsungSamsung today announced its financial results for Q2 FY2013. The company posted record revenues of ₩57.46 trillion (about US$51 billion) and net profits of ₩7.77 trillion (about US$7 billion). Digging further into the results suggests that Samsung’s explosive smartphone growth is slowing. The Mobile division saw sales rise 9% to ₩34.58 trillion (about US$31 billion) from the prior quarter but operating profit was down 3% to ₩6.28 trillion (about US$5.7 billion).

Samsung described shipments of its Galaxy S4 flagship smartphone as “solid” but noted that there was a “marginal profit decline” in its overall smartphone business which it attributed to the increased marketing, R&D and other costs. On the tablet side, demand fell in developed markets but increased in emerging markets.

Samsung predicts that Q3 will see growth for both its smartphone and tablet businesses. It expects LTE adoption and “mass market” (read entry-level to mid-tier smartphones) to drive overall smartphone sales. It warns though that competition will intensify as competitors launch new products. Apple, one of its strongest rivals, is expected to refresh both its smartphone and tablet lineups. Even smaller competitors like LG which recorded record shipments of its own are putting pressure on Samsung.

Market analysts have been predicting that the smartphone business could not sustain the levels of growth it has shown in recent years. It appears that this is finally happening. It will be interesting to see how the market evolves from here.

What do you think the smartphone and tablet market will look like in three years from now? Let us know below.

Sources : Samsung Electronics // SammyHub