April 30, 2014 13:16
Samsung Electronics' dependency on smartphones is increasing as its mobile division accounted for over 75 percent of the firm's total operating profit in the first quarter of this year.
Samsung on Tuesday said it posted W53.68 trillion (US$1=W1,031) in sales and an operating profit of W8.49 trillion in the three month period, with the mobile division making up 60.4 percent of sales and a whopping 75.7 percent of operating profit.
This is the first time the division surpassed the 75 percent mark in the firm's operating profit.
With burgeoning sales of mid- to low-prices smartphones, Samsung sold 89 million units in the January-March period, up 3 million from the fourth quarter of last year, which was a high-demand season.
In order to reduce this heavy dependency on the mobile division, the electronics maker aims to boost its performance in other areas.
With a boom in the DRAM chip market, the firm posted an operating profit of W1.95 trillion in the semiconductor division. But the consumer electronics division saw lackluster sales with an operating margin in the one-percent range.
Samsung expects to perform better in sales of TVs and displays in the second quarter as a series of large sporting events like the World Cup will take place.
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