Mobile

Samsung profits up 50%, smartphone market share grows to 33% (as Apple takes a dive)

Above: Samsung's Galaxy S4 launch event

Image Credit: Devindra Hardawar/VentureBeat
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Samsung doesn’t have to worry about giving up its smartphone market throne anytime soon.

The Korean electronics giant today reported net operating profit of $7 billion for the second quarter of 2013, up 50 percent from a year ago, primarily led by its smartphone sales. Samsung doesn’t reveal how many smartphones it ships, but according to the research firm Strategy Analytics, the company reached 76 million units during the quarter (up from 48.7 million last year).

Samsung’s immensely successful earnings report looks even better when compared to Apple’s past quarter, in which the Cupertino, Calif. company reported slightly higher revenues and profits from last year, but missed analyst estimates when it came to iPad sales. Samsung has also overtaken Apple as the most profitable smartphone maker.

Strategy Analytics noted that Samsung’s smartphone market share continued to grow in the last quarter, jumping to 33.1 percent from 31.1 percent a year ago, while Apple’s fell three points to 13.6 percent. Apple remains a solid No. 2 in the smartphone market, but its increasing gap with market leader Samsung could be a cause for concern down the line.

Overall, global smartphone shipments rose 47 percent to 229.6 million during the quarter, Strategy Analytics said. Smartphones made up 59 percent of the mobile market. According to Neil Shah, senior analyst at Strategy Analytics, higher smartphone demand is due to the growing desire for 4G devices in developed countries, as well as 3G smartphones in emerging countries.