Samsung’s Galaxy range helps profits soar 76 pc

0
364

Samsung says sales of its Galaxy S III and Galaxy Note saved its mobile division from profit losses sustained elsewhere, but expressed concern at growing competition

Samsung’s profits for the fourth quarter of last year rose 76 per cent from the same time last year, with growth in its mobile division driven mainly by the Galaxy S III and Galaxy Note II.

Net profit for the final quarter of 2012 totalled 7.04 trillion South Korean won (£4.1 billion), up from 4.01 trillion won (£2.4 billion) a year earlier.

The Korean manufacturer made 56.06 trillion South Korean won (£32 billion) in the last three months of 2012, 27.23 trillion won (£15 billion) of which was from sales of mobile devices.

Samsung said this growth in the mobile division “was mainly driven by solid sales of Galaxy S III and Galaxy Note II.”

A statement from the company added that smartphone sales “prevented wider losses” sustained by Samsung over weak demand for IT panels for notebooks and monitors.

The manufacturer’s senior vice president and head of investor relations Robert Yi said: “Heading into this year, we are expecting a slow recovery in the component business due to reduced capital expenditures, while competition in the set business will intensify further as demand slows and the mid- to low-end market expands.”

Yi also expressed caution over the continued strength of the Korean won in 2013.

Samsung said that growth in emerging markets was the ‘silver lining’, but that it expected this to decline.

The statement said: “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.

“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.”

NO COMMENTS

LEAVE A REPLY