Samsung's profits jump to £4.2bn

Apple’s sun might be setting in the West but Samsung’s is rising in the East.

The South Korean electronics giant announced today it made a net profit of 7.15 trillion won (£4.2 billion) in the first quarter, slightly less than the last three months of 2012 but up 41% from the same period last year. It comes in the same week Apple posted its first fall in profits for a decade, as sales of its iPhone flag. To deepen Apple boss Tim Cook’s chagrin, Samsung’s results were driven by its smartphone success, with sales up 7% from the last quarter to 32.82 trillion won.

Despite the strong first-quarter performance, Samsung’s head of investor relations Robert Yi sounded a note of caution for the period ahead, saying: “We may experience stiffer competition in the mobile business due to expansion of the mid- to low-end smartphone market, while TV growth will continue to wane in developed markets.”

Yi said Samsung planned to increase its research & development spending to remain competitive.

Revenues between January and March fell slightly on the previous quarter, down 6% to 52.87 trillion won (£30.6 billion).