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Samsung Electronics profits jump ahead of Galaxy S IV launch

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What is Samsung reporting?

Samsung is releasing its latest and undoubtedly the greatest flag ship smart phone it has come up with till now on this Saturday, the Samsung Galaxy S IV. The release will be in the United State for now, and it is expected to follow on to the rest of the world very shortly. And ahead of that, the South Korean smart phone giant has announced another profit growth for the six quarter in a row.

What is the rival going through?

The announcement from Samsung comes at a time when the Cupertino tech giant, Apple, is not in a good condition. Apple has reported the first ever profit drop in almost a decade. And if you remember, there was a rumor some time back which suggested that the company is planning on replacing Tim Cook as the CEO of the company.

The Cupertino tech giant is supposed to release the next iteration of its world famous smart phone, the Apple iPhone, later this year. And the release of the Samsung Galaxy S IV before that is certainly going to take away some of the market share from Apple.

How will Galaxy S IV contribute to Samsung’s profits?

The Samsung Galaxy S IV is going to be a big sale, and every one knows that. The South Korean smart phone giant has invested a lot in the marketing of the smart phone. Just a couple of days back the company unveiled the first Samsung Experience shop in collaboration with Best Buy. It is true that this shop gives access to all Samsun products and not only the new flag ship smart phone, but the device is going to be the focus of attention for some time now.

The Samsung Galaxy S IV smart phone has a very huge fan base world wide, which is waiting to buy the device like a hot cake. The device is being shipped to 327 wireless carriers in 155 countries. The smart phones will also be sold unlocked in some of the countries. With so much of demand, the company is actually afraid that it might not be able to provide for the demand in time.

The company makes almost 70 per cent of its income from its smart phone department. And in this quarter, the company’s mobile division was able to raise a profit of 6.51 trillion Won, which accounted for almost three-fourth of the total company profit.

In the quarter that ended in March, the company is expected to have sold 68 to 70 million smart phones, and around 63 million in the previous quarter. Apple, on the other hand, has been successful in selling 37.4 million in the quarter which ended in March, and 47.8 million in the previous quarter.

Source: Reuters

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