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Friday, October 05, 2012
Samsung Earnings Reach New High

Samsung Electronics forecast another record quarterly operating profit, driven by strong sales of high-end smartphones, despite the weak semiconductor orders.

According to the guidance for Samsung's third quarter earnings released today, Samsung will report a record-high profit for a fourth straight quarter.

Samsung estimated its quarterly revenue at 52 trillion won.

Samsung's growth has been driven by the increased demand for its Android-powered smartphones that outweighed weak orders for memory chips and thin margins in television sales. Samsung surpassed Apple and Nokia in annual smartphone sales for the first time in 2011, according to Strategy Analytics. The company's smartphone business is responsible for about two-thirds of the company's $7.3 billion profit.

Analysts estimate that Samsung has sold 60 million smartphones in the three months ended Sept. 30, including 18 million of the Galaxy S III.

In the meantime, Samsung is trying to overturn a U.S. jury's verdict that it should pay Apple $1 billion for patent infringements. The judge's decision is expected in December.

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