Samsung Posts Record Profits in Third Quarter

on Oct 26, 2012
Listen

Samsung (KS:005930) reported record profits for the third quarter of $7.4 billion (£4.59 billion) boosted by strong smartphones and flat panel sales.

**Q3 Earnings**
The Korean giant said its July-September operating profit rose by 91 percent to 8.12 trillion won (£4.59 billion) in line with previous estimates. Net profits rose to 6.56 trillion won (£3.71 billion) and sales increased by 26 percent to 52.18 trillion won (£29.5 billion), which is equivalent to 19 percent of South
Korea’s gross domestic product.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

Operating profit from the mobile division rose by more than 100 percent to 5.63 trillion won (£3.19 billion) in the quarter from 2.42 trillion won (£1.37 billion) a year ago, while the company’s display panel business also swung to an operating profit of 1.09 trillion won (£616 million) from a 90 billion won (£51 million) loss a year earlier. The semiconductor division underperformed with earnings falling by 28 percent to 1.5 trillion won (£848 million).

With the nearing holiday season, which is expected to boost demand for mobile devices, Samsung believes the competition will intensify despite the global economic slowdown.
!m[Korean Giant Takes Lead in the Smartphone Race](/uploads/story/655/thumbs/pic1_inline.png)“Looking ahead, for the remaining quarter, year-end seasonality will push up demand for mobile devices including tablet PCs, as new products make their way into markets with more competitive pricing,” the company said on Friday.

Analysts forecast slowdown in momentum for the Korean giant as it is likely to cede some market share to Apple’s new range of devices including the iPad Mini and the iPhone 5.
**Smartphone Domination**
Samsung does not disclose its shipment numbers but according to Seoul-based Daishin Securities, the company shipped around 57.7 million smartphones in the third quarter, 17.2 milllion more compared with the last quarter. This gives it a global share of 31.3 percent, more than double that of Apple (NASDAQ:AAPL), which sold 26.9 million iPhones. Sales of Samsung’s flagship phone Galaxy SIII have been estimated around 18-20 million for the July-September period.

Overall the smartphone segment grew by 45 percent to 179.7 million shipments of which Apple and Samsung together accounted for 46.3 percent. According to research company IDC, Blackberry-maker RIM (TSE:RIM) and the Finnish company Nokia (NASDAQ:NOK) both saw sales numbers and market share plummet. Nokia crashed out of the top three smartphone makers and its place was taken by RIM, which shipped 7.7 million devices, down from 11.8 million a year ago. The Finnish company sold only 6.3 million smartphones.
Nokia’s share losses have meant gains for competitors,” said Kevin Restivo, IDC’s senior research analyst. “The company’s transition away from Symbian-powered smartphones to ones shipped with Windows Phone has left ample opportunity for rivals to steal share away from Nokia over the past 18 months.”
**Vodafone Places Samsung’s Smartphones as First-in-Line for 4G**
The mobile carrier announced today it will offer Samsung Galaxy SIII and Samsung Galaxy Note 2 handsets on its 4G network when it launches next spring. Vodafone will also make it easier for existing customers to switch to an LTE handset as a part of its “4G Promise” scheme.
“Provided a pay monthly customer has been with us for at least three months, they can come into a store and ask to switch to ultra-fast 4G. We’ll take back their old phone, knock 70 [percent] off their remaining contract charges and give them a new 4G phone and a new 4G contract.” the mobile operator told The Inquirer.
The company has yet to announce how much the new 4G network will cost but experts believe prices will be similar to its rival EE, which is launching 4G starting next week.

Ad

Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Manufacturing Stock Market Tech