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| Samsung estimates record profits on smartphone sales | Samsung estimates record profits on smartphone sales |
| (37 minutes later) | |
| Samsung Electronics has said it expects to make a record profit for the quarter to the end of December, powered by growing sales of its smartphones. | Samsung Electronics has said it expects to make a record profit for the quarter to the end of December, powered by growing sales of its smartphones. |
| It has estimated an operating profit of 8.8 trillion won ($8.3bn; £5.1bn) for the quarter, a 90% jump from the same period a year earlier. | It has estimated an operating profit of 8.8 trillion won ($8.3bn; £5.1bn) for the quarter, a 90% jump from the same period a year earlier. |
| That would make it the fifth quarter in a row of record profits for Samsung. | That would make it the fifth quarter in a row of record profits for Samsung. |
| The success of its Galaxy smartphones helped Samsung overtake Nokia as the world's biggest phone maker last year. | The success of its Galaxy smartphones helped Samsung overtake Nokia as the world's biggest phone maker last year. |
| Analysts said that given the popularity of its smartphones, the South Korean firm was likely to see its profits grow further in the coming months. | Analysts said that given the popularity of its smartphones, the South Korean firm was likely to see its profits grow further in the coming months. |
| "Not only are their smartphone sales growing, they have also learned how to make a good profit on those sales," James Rooney, chairman of Market Force Company, an advisory firm based in Seoul, told the BBC. | "Not only are their smartphone sales growing, they have also learned how to make a good profit on those sales," James Rooney, chairman of Market Force Company, an advisory firm based in Seoul, told the BBC. |
| "Given these factors, this streak of record breaking quarters is likely to continue for a while," he added. | "Given these factors, this streak of record breaking quarters is likely to continue for a while," he added. |
| 'Momentum may slow' | |
| One of the key drivers of Samsung's smartphone sales in recent months has been its Galaxy S3 model. | |
| However, the phone is facing increased competition, not least from rival Apple, which launched its iPhone 5 in September last year. | |
| Other rivals, such as Nokia and HTC, have also launched new handsets powered by Windows Phone 8, in an attempt to increase their market share. | |
| At the same time, there are also concerns that the pace of growth of sales that Samsung has seen in recent quarters could slow in the coming months. | |
| "Investors are a bit concerned that Samsung's momentum may slow in the first half after posting a series of record profits," said Kim Sung-Soo a fund manager at LS Asset Management. | |
| "The smartphone market is unlikely to sustain its strong growth, as advanced markets are nearing saturation," he explained. | |
| Mr Kim added that a slowdown in the smartphone division may hurt Samsung as other parts of its business, such as manufacturing memory chips and televisions, have already been impacted by a contraction in global demand. |