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Soaring profits leave Samsung with a $40 billion cash pile

Published May 8th, 2013 5:30PM EDT
Samsung Cash Pile $40 Billion

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Given that Samsung is one of only two smartphone vendors in the world to post significant profits, it’s not surprising that it has been accumulating a massive pile of cash that it can plug into research and development or even return to shareholders as part of increased dividend payments. The Wall Street Journal notes that Samsung’s latest earnings report shows that the company now has almost $40 billion in cash and cash equivalents, while its net cash position minus debt is around $28.5 billion.

Samsung tells the Journal that it plans to use all this cash for “investments sustainable for areas like facilities, R&D, and marketing that will help the company solidify or boost competitiveness” in the consumer electronics industry. The company’s investors are likely going to want a bigger piece of the profit pie, however, since the Journal says that its current dividend payments are set at least than 1% of its share price.

Brad Reed
Brad Reed Staff Writer

Brad Reed has written about technology for over eight years at and Network World. Prior to that, he wrote freelance stories for political publications such as AlterNet and the American Prospect. He has a Master's Degree in Business and Economics Journalism from Boston University.