Samsung’s Galaxy Note tablet has been a runaway hit – putting a dent in Apple’s lead in the tablet market with 7 million sales – and now Samsung is to release a ‘sequel’ this October.

The follow-up, Galaxy Note 2, will have an even bigger screen at 5.5-inches, and a super high-resolution screen with a resolution of 1680×1050.

The hit five-inch phone-tablet has become a cult smash – and the new model could even eat into the sales of the upcoming iPhone 5, which seems set to have a larger screen.

It will also have a 12-megapixel camera and a quad-core processor – specifications that will keep it ahead of the likely technologies inside Apple’s upcoming iPhone 5.

Samsung’s Galaxy smartphones have been key to the Korean giant’s recent surge in profits.

Samsung’s Galaxy smartphone, dubbed the iPhone killer for knocking its Apple-made rival off the top sales spot, sent the electronic giant’s profits soaring to a record high.

When it finalises its second quarter results, Samsung expects to make underlying profits of between £3.7bn and £3.9bn, the company said in guidance given to the market.

The figure is a 79pc jump on last year’s results, but such was the anticipation behind the company’s performance that these figures actually fell short of what many analysts were expecting.

The South Koran company is now the largest maker of memory chips, mobile phones and flat-screens in the world.

Although the company did not break down its divisions, earnings from its Galaxy arm are expected to make up 65pc of profits.

The Galaxy phone models, which have already overtaken the iPhone in global sales, were the driving force behind the profits increase.

The group sold six million S III models during the three months – although this was a million short of initial estimates.

But it could not overcome a slump in demand for electronics among in Europe, North America and China, fuelled largely by worries over the eurozone.

Later in the year Apple will have its chance to retaliate by releasing its latest iPhone.