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A familiar story: Samsung rakes in record Q1 profit, but growth slows

Samsung Q1 2013 Earnings

Apple shares skyrocketed between 2009 and the end of 2012 as the company repeatedly posted record quarterly earnings. Of course, gravity eventually wins — breakneck growth simply can’t be maintained forever. Samsung, too, has seen unbelievable growth over the past couple of years and its quarterly results have reflected its incredible success. But how long will the party last?

In the March quarter, Samsung posted its audited results and the were even more impressive than the company’s pre-announcement: Audited operating profit soared to $7.9 billion instead of the $7.7 billion Samsung expected, sales climbed to $47.6 billion, and net profit ballooned 44% year-over-year to $6.4 billion.

But Samsung’s growth decelerated compared to the prior quarter, when its profits grew by 54% and revenue rose nearly 17%.

Samsung still has some big quarters ahead, especially considering the huge demand for its new flagship Galaxy S4 smartphone. It is still growing. But gravity always wins and Samsung simply can’t keep growing like this forever. The good news, though, is that investors have the Apple lesson fresh on their minds. As a result, Samsung’s stock might not see the heart-wrenching 40% dive Apple has endured over the past seven months when its growth finally starts to slow significantly in the coming years.

Zach Epstein

Zach Epstein has been the Executive Editor at BGR for more than 10 years. He manages BGR’s editorial team and ensures that best practices are adhered to. He also oversees the Ecommerce team and directs the daily flow of all content.

Zach first joined BGR in 2007 as a Staff Writer covering business, technology, and entertainment. His work has been quoted by countless top news organizations, and he was recently named one of the world's top 10 “power mobile influencers” by Forbes. Prior to BGR, Zach worked as an executive in marketing and business development with two private telcos.