Samsung expects record profit thanks to smartphone boom

Samsung expects record profit thanks to smartphone boom

The world market leader in memory chips and LCD televisions expects operating profit to nearly double year-on-year to around 5.8 billion won (3.9 billion euros) in the first quarter of 2012. This was announced by samsung, the number two in the cell phone market, on friday in an earnings outlook for the months of january to march.

In terms of sales, the sudkoreans expect a group-wide increase of around 22 percent to about 45 billion won. Samsung did not initially disclose net income for the first quarter. In the fourth quarter of 2011, samsung achieved an operating profit of 5.3 billion won, the highest ever in the company’s history. The surplus rose to four billion won.

Samsung did not give any concrete reasons for the strong performance in the first quarter. According to market observers, the group benefited in particular from continued strong demand for smartphones in the galaxy series and rising sales of the galaxy note, which falls roughly between a smartphone and a tablet computer.

Samsung had previously forecast that the smartphone market would experience another powerful growth spurt this year, partly due to demand in the emerging markets and the spread of the even faster data radio standard LTE.

With its galaxy models, the sudkoreans had surpassed their u.S. Competitor apple in smartphone sales in the third quarter of 2011. In the fourth quarter, apple again took over the top position with 37 million iphones sold. Both companies were involved in a bitter dispute over design and technology patents for smartphones and tablet computers.

Leave a Reply

Your email address will not be published.