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Samsung increases profits thanks to success of smartphones mobile payments gain popularity

July 7, 2012

A South Korean electronics maker recently reported major profits during the second quarter of the year, thanks to strong sales of its smartphones.

A South Korean electronics maker recently reported major profits during the second quarter of the year, thanks to strong sales of its smartphones.

Samsung announced that during the period it had recorded $5.9 billion in profits, due in large part to the success of its new S II model. Many innovative companies are using Samsung products in conjunction with mobile payment systems, one of the fastest-growing trends in the business sector.

And while the news was positive, there are some ongoing concerns about how Europe’s ongoing debt crisis will affect future sales.

“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 an unnamed executive in an interview with Reuters. “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.”

Samsung had other positive news as of late when it was named the top company in the Campaign Asia-Pacific2012 Asia’s Top 1000 Brands report. The brand was followed by Apple, Sony, Nestle and Panasonic.

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