Samsung's Q1 Financial Report Shows Rising Profits Despite Growth Slowdown

Samsung's first quarter financial numbers are in, revealing a net profit increase of $6.4 billion alongside a slow down in growth, which is being attributed to increased competition in the low and mid-end smartphone market. Such quarterly profits represent a 42-percent increase over the first quarter of 2012, however, and many analysts are saying that Samsung is still on the top, reports The Wall Street Journal.

Once again, smartphone sales were the driving force behind Samsung's success in a market polarized between iOS and Android, with Apple being the Korean company's biggest competitor. Samsung didn't reveal how many smartphones it shipped during the quarter, but estimates are putting the number at about 70 million devices, which would likely allow the company to retain its top position in the smartphone market.

Quarterly earnings were up again, with Q4 2012 coming in at 7.04 trillion won, a figure that was eclipsed by last quarter's 7.15 trillion won. The South Korean company saw an overall sales increase of 16.8-percent, with cell phones and telecommunications devices representing just under three-quarters of its profits, with its mobile division seeing a slight rise in operating profit margin.

As we saw with T-Mobile earlier this week, Samsung has suffered delays in getting its GALAXY S 4 flagship handset out to carriers on time, resulting in delayed and pushed back launch dates. The problem is said to be caused by high demand and inventory issues, but that doesn't bode well when the company is relying so heavily on the phone to drive it to another quarter of success.

[via Wall Street Journal]