Samsung enjoys galactically good sales

Soaring sales of its Galaxy smartphone drove Samsung’s quarterly profit to a record.

The South Korean technology giant made the equivalent of 4.76 billion euros.

That was despite Europe’s debt crisis denting demand in its biggest market for televisions and home appliances and a parts shortage that meant it couldn’t build as many of the new popular Galaxy S III model as it wanted.

Sales of the flagship Galaxy smartphones are likely to have stretched Samsung’s lead over rivals Apple and Nokia.

While strong handset sales grab the headlines, more than doubling profit growth, other businesses such as chips and consumer electronics are having to cope with lowered prices and demand.

The weak euro is also eating away at the profits Samsung brings back into South Korea.

In a sign that the eurozone crisis is occupying minds in boardrooms around the globe, Samsung executives said this week the group was operating to a contingency plan.

“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,” said one executive who didn’t want to be named as the plan is internal.

“Our smartphones are flying off the shelves, with some outlets reporting 40-60 percent sales growth, but that’s distorting the overall trading outlook which is more challenging due to the weak global economy and a weak euro.”

The euro has fallen around five percent against the Korean won since April, and about eight percent in the past year, to two-year lows.

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