Samsung Electronics, the largest manufacturer of mobile phones and TVs in the world, reported a record profit of 8.800 billion won ($8.3 billion) for the fourth quarter of last year, above analysts’ estimates due to higher sales of smartphones.
The previous record was set in the third quarter when the South Korean group recorded an operating profit of approximately $7.5 billion. In the last three months of 2011, the company had a profit of about $5 billion.
According to preliminary financial results published today, Samsung Electronics’ revenue rose 18% in the fourth quarter of last year to 56,000 billion won ($52.6 billion), mainly due to the high demand for high-end smartphones – Galaxy Note II and Galaxy S III, with sales that fended off the launching iPhone 5.
The company does not provide data on the results of its divisions, but analysts contacted by Bloomberg estimated that profit made by the mobile phones business has doubled compared to the last quarter of 2011, while the market debut of the iPhone 5 suffered from problems with Apple’s new maps application.
Samsung sold about 62 million smartphones in the last three months of 2012, compared to 45 million units for Apple, according to South Korean analysts’ estimates. Samsung shares fell 1.3% on Tuesday in Seoul, after having climbed 44% last year, compared with a rise of 31% for Apple on the New York Stock Exchange.
Sales of Galaxy S III might suffer in the first half of this year because potential customers waiting for the next launch of the fourth generation of the flagship smartphone from Samsung. The South Korean company will have to provide for charges in its financial statements due to the $1.05 billion damage award won by Apple in an August 2012 patent lawsuit.
The company was able to consolidate its leadership in the mobile phone market and the smartphone segment by launching various models, adapted to all types of customer demands and conditions in different regions. Robust production and distribution chain helped the company maintain competitive prices and maximize profit margins.
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