Samsung expecting record earnings
Published 08/01/2013 | 06:12
Samsung, the world's largest technology company by revenue, expects record earnings for the fourth quarter of 2012 as shoppers continued to snap up its smartphones and tablets.
The company said its operating profit for the October-December quarter would be about 8.8 trillion won (£5.1 billion), up 89% from a year earlier and higher than expectations.
It will release its full quarterly result including net profit at the end of this month.
The maker of Galaxy smartphones and tablets said fourth quarter revenue likely rose 18% from a year earlier to 56 trillion won.
Analysts said nearly 70% of the operating income for the quarter was likely generated by Samsung's mobile division that makes and sells smartphones and tablets. Samsung's mobile business, which recently overtook Apple in smartphone sales and Nokia in mobile handsets, has driven Samsung's earnings growth in recent quarters.
Samsung's quarterly operating profit has risen steadily since the final quarter of 2011, while rival mobile phone makers such as Nokia, Research In Motion and HTC have experienced falling market share and profits.
Samsung shipped at least 60 million smartphones in the last quarter of 2012, according to analysts' estimates, about 10% growth from the previous quarter.
The launch in September of the Galaxy Note II, a giant smartphone with a 5.5-inch screen and a digital pen, helped Samsung retain its market dominance during the Christmas holiday season despite competition from Apple's iPhone 5, analysts said. Samsung's flagship Android device, the Galaxy S III, also sold strongly.
Jin Sung-hye, an analyst at KTB Securities, estimated Samsung shipped 15 million S III smartphones and seven million of the Note II during the final three months of 2012.
The surprise popularity of the Note II device prompted other handset makers to increase the screen size of their smartphones as consumers embrace a wider mobile phone screen to watch videos.