During the second quarter, South Korean electronics giant Samsung Electronics Co registered an increase of 83% in its net profit at 4.28 trillion won ($3.6 billion) from 2.33 trillion won year on year.

The company's net profit went up on the back of sturdy demand for chips and flatscreen televisions.

During the three month period ended June 2010, the company's operating profit surged 88% to 5 trillion won.

Sales grew by 17% to 37.99 trillion won.

In a statement, Robert Yi, head of Samsung's investor relations, said, "In the second quarter, our component businesses performed very strongly, yet it was a more challenging quarter for our set businesses."

The company benefitted from a recovery of the computer industry and sturdy demand for consumer electronics that drove up prices for key components like chips and liquid crystal displays for TVs.

But, average sale prices for cellular phones fell owing to stronger rivalry, the world's second-largest handset maker after Finland's Nokia Corp said.

Mobile phone shipments increased by 22 percent year-on-year to 63.8 million units, but were down from 64.3 million units in the first quarter.

Samsung's semiconductor division recorded an almost 8-fold increase in its operating profit to 2.94 trillion won.

Samsung expects its third-quarter performance to be driven by strong demand for core components, but warns against declining profit margins because of falling TV prices. (With Inputs from Agencies)