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| Samsung profits up 76% as mobile earnings double | Samsung profits up 76% as mobile earnings double |
| (about 1 hour later) | |
| Samsung Electronics said its profits surged 76% in the last three months of 2012, on the strength of its booming smartphone business. | Samsung Electronics said its profits surged 76% in the last three months of 2012, on the strength of its booming smartphone business. |
| Net income rose to a record 7.04tn won ($6.6bn; £4.2bn), up from 4.01tn won in the same period a year earlier, beating analysts' expectations. | |
| The Korean firm said its mobile profits more than doubled over the same period. | The Korean firm said its mobile profits more than doubled over the same period. |
| Last year, Samsung became the world's biggest smartphone maker, overtaking Apple, its main rival in the sector. | Last year, Samsung became the world's biggest smartphone maker, overtaking Apple, its main rival in the sector. |
| "Overall its earnings momentum remains intact," said Lee Se-chul, from Meritz Securities in Seoul. | |
| "Smartphone shipments will continue to grow, even in the traditionally weak first quarter, as Samsung's got a broader product line-up and Apple appears to be struggling in pushing iPhone volumes aggressively." | |
| Samsung did not provide data on the number of smartphones it had shipped, but analysts estimate it sold 63 million smartphones in the quarter. | |
| Galactic sales | |
| The firm said its Galaxy line of smartphones and tablets has been its top seller, driving profits. | |
| The handsets division, which sells about a quarter of all mobile phones in the world according to analysts, saw an operating profit of 5.44tn won, up from 2.56tn won a year earlier. | |
| Earnings were also helped by Samsung's displays unit, which made a profit, after losses a year earlier. | |
| The unit enjoyed a sales boost from its organic light-emitting diodes (OLED) screen, used in the Galaxy smartphones. | |
| The firm said its capital spending this year will be similar to 2012 levels, despite analyst expectations that it would be cut. | The firm said its capital spending this year will be similar to 2012 levels, despite analyst expectations that it would be cut. |
| 'Decelerating demand' | |
| However, it did caution that increased competition in the smartphone sector could lead to a softening of demand in some regions. | |
| "The furious growth spurt seen in the global smartphone market last year is expected to be pacified by intensifying price competition, compounded by a slew of new products," the company said in its earnings statement. | |
| "In the first quarter, demand for smartphones in developed countries is expected to decelerate, while their emerging counterparts will see their markets escalate with the introduction of more affordable smartphones and a bigger appetite for tablet PCs throughout the year." | |
| Both Apple and Samsung are facing tough competition in markets such as China from smartphone-makers with more competitive prices. |