Samsung sees record Q3 profit, driven by Galaxy smartphone sales

October 5th, 2012, 22:11 Posted By: wraggster

Samsung has estimated an all-time high quarterly operating profit of $7.3 billion (£4.5bn), almost double last year’s figure.
Smartphone sales drive much of the profit at the company, which also makes screens, semiconductors and TVs.
"Stronger than expected sales of Galaxy S3 and high-end television models appear to have propelled strong earnings growth in the third quarter," said analysis Lee Sun-Tae, from NH Investment & Securities.
Analysts believe that almost 70 per cent of Samsung’s operating profit was from its mobile communications business. Despite Apple reducing orders of Samsung’s components for its iPhone 5, experts say the company’s display division likely earned more profit than a year earlier as the demand for smartphones benefited sales of AMOLED hi-res screens.
“The high-end smartphone market is split between Samsung and Apple, with their operating profit margins staying high at 30-50 percent at present,” Nomura analyst Marcello Ahn said.
“Going forward, if price competition between the two intensifies, we think smartphone margins may decline at a pace faster than our expectation.”
Samsung’s estimated profits have sent its shares 1.5 per cent higher.

http://www.pcr-online.biz/news/read/...e-sales/029315

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