Samsung estimates profits up 53 per cent

5 April 2013
SS By Sofia Mitra-Thakur
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Samsung estimated its January-March operating profit rose 53 per cent to 8.7 trillion won (£5.03 billion)

Samsung estimated its January-March operating profit rose 53 per cent to 8.7 trillion won (£5.03 billion)

Samsung, the iPhone's main adversary, estimated its January-March operating profit rose 53 per cent to 8.7 trillion won (£5.03 billion) as sales of mid-tier smartphones helped the South Korean giant tide over the off-peak season.

The guidance, released ahead of full quarterly results by April 26, was better than an average forecast for 8.3 trillion won in a poll of 42 analysts by Thomson Reuters I/B/E/S.

That marks the end of five straight quarters of record profits for the world's biggest technology firm by revenue.

But analysts say earnings will hit a new high in the current quarter as Samsung's Galaxy S IV smartphone hits the market this month.

The Galaxy S and Note series have fuelled Samsung's record-breaking earnings growth and made it the No.2 player in the global premium smartphone segment after Apple.

But as the high-end market swarms with new offerings, Samsung is turning to less affluent customers in emerging markets, offering cheaper models such as the Rex and Galaxy Pop, analysts said.

Samsung capitalised on its 30-plus smartphone models that cover nearly all price points to boost shipments to a record in the first quarter while the post-year end holiday season sapped sales at chief rival Apple, according to the analysts.

Samsung, valued at around £144 billion, estimated its first-quarter sales at 52.0 trillion won, versus a market forecast for 53.0 trillion won.

The South Korean firm likely sold 68-70 million smartphones, up from 63 million in the December quarter, according to five analysts.

By comparison, Apple's iPhone shipments likely slumped some 30 per cent to the 30 million range from 47.8 million in the previous quarter, they said.

Shares in Samsung, worth around £144 billion, fell 3 per cent over the past three months, beating a 2 per cent drop in the wider market. Apple lost 19 per cent in the same period.

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