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The new Samsung Ativ One 5 is put on show at Earls Court, London on June 20, 2013/AFP

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Samsung posts record Q2 profit, smartphone fears linger

He added that investors are growing concerned as Samsung relies heavily on sales of smartphones to drive growth.

With an expected drop off in demand for high end phones, brokerages began cutting their forecasts for earnings and sales in June.

While Samsung did not reveal smartphone shipments it is thought to have sold about 75 million in the past quarter, including about 20 million Galaxy S4s.

But while that helped Samsung maintain its status as the world’s largest handset maker, the figure is only slightly up from the estimated 70 million shifted in the previous three months, suggesting a slowdown in growth momentum.

Samsung’s record earnings come after US giant Apple unveiled its fiscal third quarter results, which showed net profit had plunged 22 percent year on year.

But while sales of Apple’s iPhone beat expectations, there are still fears for the high end smartphone market as cheaper Android devices from China and emerging markets become more attractive options.

Samsung, Nokia Corp. and HTC Corp. are launching more affordable devices to diversify their product lineups, although analysts have warned that such a move could hit their profit margins in the longer term, analysts say.

Hanmag Securities’ Oh forecast Samsung’s operating profit would rise to 10.5 trillion won in the third quarter to the end of September, although he said this would mainly be thanks to sales of displays, semiconductors, and tablet computers.

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