Samsung Expects Profits to Double from Smartphone Boost

Samsung Electronics has said it expects its profit for the first three months of the year to almost double as its smartphone sales continue to grow.

Visitors walk by a billboard of Samsung Electronics Galaxy Note at the firm's headquarters in Seoul, South Korea, in this file photo. Samsung expects its profits to double due to the growing success of its smartphone business. (AP Photo/Lee Jin-man)

The company said it expects an operating profit 5.8 trillion won (US$ 5.1 billion; £ 3.2 billion) for the period.

The success of Samsung’s Galaxy range has seen it become the world’s biggest-selling smartphone maker.

Analysts said the firm had benefited from keeping its margins healthy, despite growing competition.

“There was a big surprise in profit, while revenue was in line, which suggests a stronger-than-expected profit margin from the handset division thanks to robust sales of high-end models like the Galaxy S and Note,” said Choi D-Yeon of LIG Investment & Securities.

“Handset margins are estimated to have topped 20% and profits from the division also topped 4  trillion won.”

Continue reading at BBC News.

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