Smartphone powers Samsung to big profit

SEOUL—

Samsung Electronics Co. said Friday its first quarter profit jumped to a record high as smartphone sales remained strong despite the April launch of an updated version of its flagship Galaxy phone.

Sales of consumer electronics are usually slow in the first three months of the year after the holiday shopping season. It’s an effect analysts thought would be compounded by this month’s release of the Galaxy S4 smartphone since many delay buying until the newest model is available. Apple Inc. has cited the upcoming release of a new iPhone as a reason for a slowdown in sales of older models.

Samsung began sales of the S4 in its home South Korean market Friday and starts U.S. sales on Saturday. Analysts expect Samsung’s profits to reach new highs in the second and third quarters if S4 sales are strong.

Samsung said January-March net profit surged 42 per cent to 7.2 trillion won ($6.5 billion U.S.) from 5 trillion won a year earlier.

That increase was despite booking a one-time charge against earnings related to settlement of its intellectual property battle with Apple. Analysts estimated the charge at $600 million.

Sales rose 17 per cent to 52.9 trillion won. Operating profit was up 54 per cent to 8.8 trillion won, in line with its preliminary results released earlier this month.