Samsung Profits Surge 79% In Second Quarter, Hits $5.9 Billion

Samsung Electronics announced on Thursday that it expects profits in Q2 2012 to surge by 79% thanks to better than expected smartphone sales that continue to grow on the strength of the Google Android powered line of devices currently being offered by the tech firm.

Based on company estimates Samsung will earn $5.9 billion, the highest quarterly profit since 2008.

The announcement comes only months after Samsung surpassed Nokia as the world’s largest manufacturer of mobile phones.

In a statement regarding the company’s earnings Nho Geun-Chang an analyst with HMC Investment Securities notes:

“Earnings will be stronger in the current quarter as sales of the high-end Galaxy S III will increase dramatically and drive the telecom division’s earnings to above 5tn won. We estimate shipments of the Galaxy S III will reach 19 million units in the third quarter.”

In the meantime some analysts worry that Samsung device sales will begin to slow when Apple releases the Apple iPhone 5 in late 2012. Historically the release of new Apple devices have led to the slow down in mobile device sales for other manufacturers.

Samsung could also increase see slipping sales as the Euro-crisis continues to mount, according to one unnamed analyst:

“Europe is our biggest consumer electronics market and we may have to initiate cost cuts and product price increases should the euro fall further from the current level.”

Samsung is also involved in a number of patent infringement lawsuits with Apple which could lead to a slow down in sales. In early July a court banned the Samsung Galaxy Tab 10.1 and Samsung Galaxy Nexus in several parts of the world.