For the first time in more than two years, Samsung’s quarterly net profit declined from the previous quarter, the South Korean electronics powerhouse said.

Samsung Electronics Co posted record earnings as sales of its smartphones surged, widening the company’s global lead as its latest Galaxy handset hits stores to take on Apple Inc in the US.

Strong sales of Galaxy phones propelled Samsung's quarterly profit to a record high, but its shares dropped today on the prospect its growth would slow in an increasingly crowded smartphone market.

A surge in Galaxy smartphone sales fuelled earnings at Samsung Electronics to a record high in the first quarter, usually a tough season for the global consumer electronics industry, outshining handset rivals such as Nokia Corp.