Samsung profits jump 62% after marketing boost
Samsung's pre-tax profits have surged 62% to £3.76bn in the second quarter on the back of a massive increase in marketing spend to support the launch of the Galaxy SIII.
The South Korean tech firm ramped up marketing spend 43% year-on-year with expenditure increasing from 2.29 trillion won (£1.22bn) to 3.13 trillion won (£1.75bn).
The increased marketing spend, which has included a high profile ad campaign featuring its Olympics ambassador David Beckham, helped sales for the three months ending 30 June hit £26.6bn, a 21% year-on-year rise.
Samsung has reported that smartphone shipments increased quarter-on-quarter due to the "successful" launch of its Galaxy SIII smartphone and Galaxy Note tablet.
However, the company was hit by a slowdown in demand for its televisions in developed markets.
The company expects to maintain momentum by releasing new smartphone products with "diverse price ranges" in the third quarter, but expects tablet competition to continue with new product launches.
Google entered the tablet market this month in the UK with its Nexus 7 tablet, while Microsoft is gearing up for the launch of its Surface tablet.
Samsung’s results come in the same week that Apple released its results, which disappointed analysts despite the company seeing net income increase 21% to $8.8bn.Follow @mattchapmanuk
This article was first published on marketingmagazine.co.uk
- Mid Weight Planner - ATL Daniel Marks London £30-£50K + Excellent Benefits, Central London
- PR Officer Blue Skies Marketing Recruitment £30000 per annum, Oxfordshire
- Senior Continuous Insight Manager - FMCG Company NG Digital Marketing up to £60k + car + bonus + benefits, Greater London
- Digital Content Executive, RETAIL Blue Skies Marketing Recruitment £22000 - £26000 per annum, Benefits: Amazing benefits package, London
- Studio Manager - late shift Network Career Consultants £35000 - £40000 per annum, London
- Kevin Bacon, Google Glass and Julian Assange: the SXSW weekend in tweets
- International Women's Day: "my gender is irrelevant" says Lisa Thomas
- Starcom MediaVest wins spice brand's multi-million euro account
- Omnicom Media Group buys Mobile5
- BBH launches sport division with Lawrence Dallaglio
- IPA's 2014 Women of Tomorrow competition winners revealed