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Samsung profits up 76% as mobile earnings double


Samsung Electronics said its profits surged 76% in the last three months of 2012, on the strength of its booming smartphone business. Net income rose to a record 7.04tn won ($6.6bn; £4.2bn), up from 4.01tn won in the same period a year earlier, beating analysts' expectations, the BBC reported. The Korean firm said its mobile profits more than doubled over the same period.

Last year, Samsung became the world's biggest smartphone maker, overtaking Apple, its main rival in the sector. "Overall its earnings momentum remains intact," said Lee Se-chul, from Meritz Securities in Seoul.

"Smartphone shipments will continue to grow, even in the traditionally weak first quarter, as Samsung's got a broader product line-up and Apple appears to be struggling in pushing iPhone volumes aggressively." Samsung did not provide data on the number of smartphones it had shipped, but analysts estimate it sold 63 million smartphones in the quarter.

Galactic sales The firm said its Galaxy line of smartphones and tablets has been its top seller, driving profits. The handsets division, which sells about a quarter of all mobile phones in the world according to analysts, saw an operating profit of 5.44tn won, up from 2.56tn won a year earlier. Earnings were also helped by Samsung's displays unit, which made a profit, after losses a year earlier.

Earnings were also helped by Samsung's displays unit, which made a profit, after losses a year earlier. The unit enjoyed a sales boost from its organic light-emitting diodes (OLED) screen, used in the Galaxy smartphones. The firm said its capital spending this year will be similar to 2012 levels, despite analyst expectations that it would be cut. 'Decelerating demand' However, it did caution that increased competition in the smartphone sector could lead to a softening of demand in some regions.

"The furious growth spurt seen in the global smartphone market last year is expected to be pacified by intensifying price competition, compounded by a slew of new products," the company said in its earnings statement. "In the first quarter, demand for smartphones in developed countries is expected to decelerate, while their emerging counterparts will see their markets escalate with the introduction of more affordable smartphones and a bigger appetite for tablet PCs throughout the year." Both Apple and Samsung are facing tough competition in markets such as China from smartphone-makers with more competitive prices.




25/01/13    Çap et