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Samsung set to post record profit thanks to soaring Galaxy S3 sales

Firm expects to double last year's numbers
Fri Oct 05 2012, 10:32
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KOREAN HARDWARE GIANT Samsung said on Thursday that it's on track to post record profits in the third quarter, exceeding analysts' expectations.

Samsung boasted that it expects to post an operating profit of 8.1 trillion Won (£4.5bn) for the third quarter, almost double its profits of 4.25 trillion Won (£2.36bn) a year earlier. Sales of its flagship Galaxy S3 handset have helped spur these numbers, with Samsung having sold more than 20 million units in just 100 days.

Julian Jest, research analyst at seems to agree too. Speaking to The INQUIRER he said, "Samsung is reaping the rewards from the Galaxy S3, a genuinely innovative device with a distinctive look and feel. Sales of the Galaxy S3 also benefited from a highly visible and sustained marketing campaign.

"It should also be noted that Samsung has ramped up sales in other segments of the mobile phone market, which may be less lucrative than the top tier of the smartphone market, but will still contribute to the top line profit."

Samsung's earnings forecast surpassed analysts' expectations and saw Samsung's share price soar 1.5 percent, although analysts expect this to be the firm's last record quarter for a while.

"Fourth-quarter profit will be pressured by one-off expenses: performance payouts and some $1 billion in legal provisioning relating to the Apple litigation. Excluding those, core earnings will remain solid and a swing factor is how much Samsung spends on marketing," Lee Sun-tae, analyst at NH Investment & Securities told Reuters.

Samsung's fourth quarter figures could be hit by the release of the Iphone 5, with Apple boasting that five million people flocked to buy its latest smartphone on its opening weekend.

Samsung was unable to provide comment at the time of publication, but will be reporting its quarterly earnings later this month. µ

 

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