Samsung Q1 net profit hits $ 7.3b

SEOUL, Apr 29 (AFP): Samsung Electronics reported Tuesday its net profit had risen 5.9 per cent year-on-year in the first quarter with a decent showing by its chips division offsetting sliding smartphone revenue.

The South Korean giant logged 7.57 trillion won ($7.3 billion) of net profit in the first three months of the year, but saw operating profit slip 3.3 per cent on-year to 8.49 trillion won, following a 6.0 per cent decline in the fourth quarter.

Alarm bells have been sounding for a while over Samsung's reliance on smartphone sales in mature markets such as Europe and the United States, and increasingly competitive emerging markets such as China.

The world's largest smartphone maker has a diverse product line ranging from memory chips to home appliances, but more than half of its profits are generated by mobile devices.

This month saw the global roll-out of the latest version of its flagship Galaxy series smartphone, the S5, whose performance will be closely watched over the coming months.