Samsung logs record high profit in 3Q

Strong sales of Galaxy phones have propelled Samsung’s quarterly profit to a record high but its shares have dropped on the prospect its growth will slow in an increasingly crowded smartphone market.

Samsung Electronics Co. said on Friday July-September net profit nearly doubled to 6.56 trillion won ($A5.81 billion) from 3.44 trillion won a year earlier. Revenue for the third quarter climbed 26 per cent to 52.2 trillion won.

The company’s shares fell 2 per cent in Seoul after the earnings announcement.

Analysts said investors are worried the widespread adoption of smartphones in developed markets and heightened competition from rivals could squeeze profit from the lucrative smartphone business.

Samsung and Apple Inc. together account for nearly half of global smartphone sales.

The South Korean company, which raked in more than half of its profit and revenue from its mobile communications business, said its Galaxy S III and Galaxy Note II smartphones will help sustain its earnings momentum in the final quarter of the year.

Samsung also plans to act more aggressively to advance its share of the tablet PC market next year, its vice presidents Kim Hyun-joon and Robert Yi said at a conference call with investors.

‘The tablet market is going through a very significant change,’ Yi, Samsung’s head of investor relations, said at a conference call.

The release of mini tablets that are between the size of smartphones and standard tablets could open up a new growth area next year, he said.

Apple, a leader in the tablet market, announced a smaller and cheaper iPad earlier this week, pitting its 7.9-inch iPad mini against small tablets from Amazon, Google and Samsung.

Samsung launched the Galaxy Note II, a giant-sized smartphone with a 5.5-inch screen and a digital pen, in the US market earlier this week.

 Read story


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s