The communications division, which includes network equipment and mobile devices, grew sales 70 percent from a year earlier to KRW 23.22 trillion, and its operating profit rose 193 percent to KRW 4.27 trillion. Handset revenues alone were up 83 percent year-on-year to KRW 18.90 trillion. Samsung said mobile demand slowed somewhat due to seasonal effects, but its profits and average selling price rose from the previous quarter thanks to a growing proportion of smartphones in the mix. The company did not provide details on how many phones it sold. Samsung expects small sequential growth in the market in Q2, led by demand for LTE and high-end phones in developed markets such as the US, Korea and Japan. The accelerating LTE roll-out in the US should also support its networks activities.
Samsung also reported stronger results from consumer electronics in Q1, led by demand for LED TVs. Sales rose 2 percent to KRW 10.67 trillion, and operating profit improved to KRW 4.77 trillion from KRW 1.54 trillion a year ago. The semiconductor division continued to suffer from lower memory prices, with sales down 13 percent to KRW 13.96 trillion, and operating profit falling 54 percent to KRW 0.76 trillion. Overall Samsung expects stronger demand in the second half of this year across its business, helped by seasonal effects.
