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Samsung Q2 net jumps 50 pct on Galaxy boom, higher chip prices

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(Globalpost/GlobalPost)

SEOUL, July 26 (Yonhap) -- Samsung Electronics Co., the world's top maker of computer memory chips and smartphones, said Friday that its second-quarter profit spiked 49.6 percent from a year earlier, buoyed by robust shipments of its flagship Galaxy S smartphones and higher chip prices.

Net profit came to 7.77 trillion won (US$6.96 billion) in the April-June period, compared with a profit of 5.19 trillion won a year earlier, the company said in a regulatory filing.

Revenue soared 20.7 percent on-year to 57.46 trillion won in the second quarter and operating profit climbed 47.5 percent to 9.53 trillion won.

The stronger bottom line was largely attributed to strong sales of the company's flagship mobile devices and seasonal demand for electronics products and higher chip prices.

Shares of Samsung Electronics were trading at 1,312,000 won on the Seoul bourse as of 9:20 a.m., down 0.23 percent from Thursday's close.

Samsung's sound business results came from brisk sales of the Galaxy S4 and other mobile devices such as the Galaxy Note 2.

Samsung said earlier that the Galaxy S4, the latest in its Galaxy S smartphone line-up, would bask in good results that are stronger than its previous models.

Global sales of its Galaxy S4 smartphone surpassed the 10 million mark since its release in late April.

The milestone comes 20 days faster than its predecessor, the Galaxy S3. It took seven months and five months, respectively, for the Galaxy S and the Galaxy S2 to reach that milestone, Samsung said.

Profits at its mobile division, the biggest earnings generator, rose 52 percent to 6.28 trillion won from a year ago, but fell 3.5 percent from the previous quarter.

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