Samsung's biggest fear? Becoming 'too full' of itself

The Samsung Galaxy Experience at Lollapalooza on August 3, 2013 in Chicago City.
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The Samsung Galaxy Experience at Lollapalooza on August 3, 2013 in Chicago City.

Samsung has blazed a trail with its highly popular lineup of Android smartphones, reportedly overtaking rival Apple as the world's most profitable handset vendor in the second quarter. But the boss of the company's electronics division says his biggest fear is to become complacent.

"My biggest worry is that we might get too full of ourselves for what we have achieved. About 20 of Samsung's products are number one in their respective category around the world. It's very important to remain humble," Boo-keun Yoon, CEO, Consumer Electronics Division at Samsung Electronics told CNBC.

"We need to continue to innovate and strive to be the best with the goal of producing top-notch products for the consumer," he added.

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In the second quarter, the maker of the Galaxy smartphone shipped over three times the number of mobile phones compared to Apple. Profits at Samsung's handset division also surpassed that of its rival's for the first time in that period, according to Strategy Analytics.

And, the South Korean electronics giant isn't backing down any time soon. The company is expected to launch its Galaxy Gear smartwatch - a smartphone device worn on the wrist - as early as next week to rival Apple's rumored iWatch, which could be unveiled in the next couple of weeks.

"There's been a lot of media discussion over a wearable device. There's no doubt that such a device will be out on the market. The issue at hand is how comfortable the device will be for the consumer - so much so that the wearer won't even realize he or she is wearing it," he said.

"If we can develop a product that's like this, then it will be a great success," he added.

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Yoon said the conglomerate - which manufactures products ranging from consumer electronics, to telecom equipment and semiconductors - is continuing to "break new ground" in technology thanks to synergies between its businesses.

"We are continuing to break new ground in technology thanks to the in-house collaboration. The three units share and exchange their new technologies and apply them in their products," he said.

The vertically integrated nature of Samsung's business is regarded as an important edge over its U.S. rival, making it less exposed to hurdles such as component shortages, for example.

—By CNBC's Ansuya Harjani; Follow her on Twitter @Ansuya_H