Galaxy S III, Galaxy Note II push Samsung to record sales

Galaxy S3

Samsung warns that it can't keep up growth pace, as rivals and price pressures bite

Samsung has doubled its smartphone profit, but warned that the incredible growth will be "pacified" by rival products and price pressures.

Quarterly revenue is up 19% to 56.2 trillion won (£33 billion), while its profit is up 89% year-on-year to 8.8 trillion won (£5.2 billion).

The division that makes smartphones, such as the Galaxy S III posted quarterly revenue of 27.2 trillion won (£16 billion) and profit of 5.44 trillion won (£3.2 billion), up from 2.56 trillion won (£1.5 billion) a year earlier.

The success was mainly brought on by strong sales of Galaxy S III and Galaxy Note II, which beat the popularity of their predecessors with record sales in record time

"Samsung led gains with its full line-up of entry- to mid-level smartphones, expanded sales of tablet PCs and an increase in average selling price (ASP) from the previous quarter," the company said.

"The success was mainly brought on by strong sales of Galaxy S III and Galaxy Note II, which beat the popularity of their predecessors with record sales in record time."

However, Samsung warned the high-level growth may not continue next year. "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 warned.

Samsung said smartphone demand would slow in developed countries in the first quarter, but increase in emerging markets, "with the introduction of more affordable smartphones and a bigger appetite for tablet PCs throughout the year".

Read more

News