Consumer electronics giant Samsung has posted record revenues and profits in its first quarter financial results following a surge in sales of mobile phones.
The company cut the price of its popular Android smartphones in advance of the recent release of the flagship Galaxy S4 device, which features an octo-core microprocessor among several new features.
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As a result, shipments of Samsung smartphones surged by 56 per cent to 69.4 million units, according to box counters Strategy Analytics. That compared to shipments of iPhones by Apple of 37.4 million units in the same quarter.
Samsung's Korean rival LG became the third-placed maker of smartphones, according to Strategy Analytics, as sales at Nokia and HTC wilted. China's Huawei and ZTE now fill the fourth and fifth spots respectively.
Furthermore, according to IDC, which also tracks computer and smartphone unit shipments, the first quarter was the first in which smartphones outsold ordinary feature phones, a trend that Samsung has capitalised on more than any other vendor thanks to its comprehensive product line-up.
As a result, Samsung posted quarterly revenues of 52.87 trillion won (£30.7bn) and net profit of 7.15 trillion won (£4.13bn).
According to the company, sales of Galaxy S3 and Note 2 smartphones proved particularly strong – thanks to price cutting – although supply difficulties with its latest Galaxy S4 may mean flatter sales in the current, second quarter.
Forthcoming Note 3 smartphones, according to rumours, will feature a shock-proof flexible OLED screen made from a flexible plastic substrate, bringing to an end the era of all-too-easily broken glass screens.
However, Samsung's strong financial performance wasn't just underpinned by smartphone sales, but also networking equipment, including 4G LTE equipment for mobile phone operators, which Samsung has targeted as a key market.
On the negative side, the company said the DRAM market remained predictably weak because of poor PC sales – indeed, the company also highlighted weaknesses in that market – while the display segment also lost money in a traditionally poor quarter.
