Samsung sells record number of handsets, but margins fall

Samsung Electronics saw its profit for the second quarter 2004 nearly triple on the back of strong sales of mobile handsets, memory chips and flat screens, but lower profit margins gave cause for concern. Net profit for the three months to the end of June rose to KRW3.13 trillion (USD2.7 billion), from KRW1.13 trillion twelve months earlier, with revenues up 52% to KRW14.98 trillion. Samsung sold a record 22.7 million phones in the quarter, 1.6 million more than in the first three months of the year, but profit margins on handsets fell 10% to 16%, hit by tougher competition.