Samsung Galaxy Drives Record Profit as S4 Hits Stores

The gap between Samsung and their biggest competitor Apple is gradually closing as Samsung overtakes Apple’s market shares. The highly anticipated Samsung Galaxy S4 went on sale in South Korea and the US will begin to sell the device soon. The demand for the Samsung Galaxy S4 is so great that the release date had to be pushed back to May 30th. As Samsung is gradually taking the lead in the smartphone industry, massive profits are being generated. The net income rose 42% to 7.15 trillion won and as smartphones sales increased by 56% to 69.4 million units. The amount of smartphones sold by Samsung is nearly double of Apples output.

Samsung is motivated to take back their number one spot in the smartphone industry which Apple has taken with the release of their iPhones. Each time Samsung releases a new and innovative product, Apple loses a portion of their market shares to Samsung. An analyst at IBK securities Co. said “it yet again succeeded in taking away some of the smartphone share from Apple”. Although the release of the S4 did not have much effect on the market because investors already knew about the profits from earlier, the company is expected to grow at a very rapid rate to shorten the gap between their biggest competitors.

Written by: Wilson Tang

Source:

http://www.bloomberg.com/news/2013-04-25/samsung-electronics-profit-beats-estimates-on-galaxy-sales.html

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