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Samsung profit soars to $6.6bn record on Galaxy smartphone demand

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Samsung Electronics has reported a 76% increase in profits in the final quarter of 2012, boosted by the ongoing success of its Galaxy smartphones.

The Korean firm's net income hit a record 7.04 trillion won (£4.2bn) over the three months, up from 4.01tn won in the same period in 2011, and smashing analyst expectations.

It also posted a profit of $6.6 billion, marking a 76% increase from the previous year.

JK Shin, President and Head of IT for Mobile Commnunication Division Samsung Electronics at the Samsung Galaxy 3 Mobile Phone launch at Earls Court Exhibition Center, London

© Rex Features / Ray Tang



Much of this growth came from Samsung's mobile division, which more than doubled its profits over the quarter.

The Galaxy range of smartphones has proved particularly popular for Samsung, including the Galaxy S flagship range selling more than 100m units in just three years.

Last year, Samsung beat Apple to become the biggest smartphone maker in the world, and also outpaced Nokia as the planet's biggest overall seller of phones.

The firm did not supply specific data on the number of smartphones it shipped in the final quarter of 2012, but analysts believe that it shifted 63m units in the period.

Samsung's handsets division, which sells around a quarter of mobile phones in the world, reported an operating profit of 5.44tn won, up from 2.56tn won a year earlier.

Earnings were further boosted by Samsung's display unit, which made a profit over the quarter, following a loss a year earlier.

It was boosted by sales of organic light-emitting diodes (OLED) screens, which are used in the Galaxy smartphones.

Samsung Galaxy Note 2


Samsung's results came after Apple shares fell 12% in the US on fears that the firm was losing its grip on the smartphone market.

Apple reported record quarterly revenue of $55bn in the final quarter of 2012, but there were concerns over lower than expected sales of the new iPhone 5.

But Samsung also saw its shares fall around 2% in mid-trading in Seoul today, after the firm predicted that consumers will buy fewer smartphones in 2013.

"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," Samsung said in a statement.

But it added: "In the first quarter [of 2013], 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."

> Apple cuts screen orders on weak iPhone 5 demand - reports
> Samsung Galaxy S4 TO FEATURE 4.99-inch, 1080p display

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