Samsung Electronics reported a record quarterly profit of $5.2 billion with shifting of more than 20,000 Galaxy smartphones per hour in the period January-March , outperforming Apple’s iPhone in the battle for the much lucrative high end mobile segment.
According to the strategy analysts , the South Korean firm which has a market revenue eleven times that of Japan based Sony Corp ; sold a record 93.5 million mobiles in the first quarter . The number is four times of all the other mobiles phones sold combined . Out of the total , 44.5 million were smartphones , which gave Samsung a 30.6 percent share in the high-end phone segment . Apple with its 35.1 million iPhones had a 24.1 percent share.
Apple and Samsung have far left behind all other competitors with the smartphone market now at risk of being turned into a two horse race . The duopoly in this sector isn’t expected to change in the coming few quarters . Samsung will be looking to keep the momentum going with its release of third generation version of the Galaxy S. They will be hoping to increase the sales further ahead of the Olympics , where it is one of the leading sponsors.
The specifications of the Galaxy S 3 are expected to be more than sensational , with the product already generating strong attention and interest out of the market players and customers alike. The new smartphone will have a Samsung quad-core processor , which they are hoping to see in mobiles sold by HTC, Motorola , Nokia and even its biggest rival Apple as well its biggest component customer.
The senior vice-president said that they are anticipating a heavy demand for the S3 and given the already generated interest , they probably wont have to shell out dollars in marketing and promotion of the sales.
Although Apple reported that the sales of iPhone in China in the last quarter increased five times , Chinese market has much more Samsung handsets as compared to those of Apple.
The market share in China’s smartphone sector increased in the latest quarter , with the number being above the global average and it now holds a thirty percent market share . Samsung unlike Apple , already has deals with major telecom players of the country.
The profits for the handsets division for the quarter tripled itself to a staggering $3.8 billion amounting to 73 % of the total profit and the operating margin rose from 12 percent in the preceding quarter to 18.4 percent for this quarter driven by strong sale of the Galaxy Note , a consumer hot of the season.