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
- Senior Planner, Direct Marketing /CRM Agency, London Direct Recruitment £70,000-100,000, London (Greater)
- Associate Creative Director MCG Associates Attractive Tax Free Salary , United Arab Emirates
- Design Director MCG Associates Attractive Tax Free Salary , Europe / France / United Arab Emirates / London (Greater) / London (Central), London (Greater)
- Global Digital Brand Manager Ball & Hoolahan £40,000 + Car/Car Allowance, London (Greater)
- ACCOUNT DIRECTORS - Integrated/ATL/TTL/BTL/SP/Shopper/Retail - London - up to £50k Judi Patton £40k-£50k plus excellent benefits, London (Central), London (Greater)
- Tesco Clubcard uses Twitter to pick out Christmas gift ideas
- Samsung launches first Christmas TV campaign in the UK
- O2 launches 'walk' campaign with Ed Sheeran
- BBH London promotes Caroline Pay to deputy ECD
- ASA bans 'strongly sexual' Giffgaff ad
- Hammerson uses automated mechanical model to showcase Christmas gifts