Samsung forecasts large jump in profits
Smartphone sales and profits
Samsung has announced that it forecasts profits of $7.7bn (£5.1bn) for the first quarter of 2013, an increase of 53 percent from last year.
Strong sales of Samsung smartphones with varying price points have helped to boost shipments and profits for the South Korean tech company. According to analysts referenced by Reuters, it is likely to have shipped around 68 million to 70 million over the quarter.
Both the Galaxy S and Note have been pinpointed as helping to fuel the profit growth. Lee Sun-tae, an analyst at NH Investment & Securities, has said: “Increasing sales of mid-tier products on top of the usual solid sales of its flagship models of the Galaxy S and Note probably helped Samsung fare better than its peers.”
End of record-breaking quartersThe estimated profit of $7.7bn (£5.1bn) will mark the end of recording breaking profits that Samsung has enjoyed over five consecutive quarters, falling short of the $7.8bn (£5.12bn) gained in the fourth quarter of 2012.
However, with the launch of the new smartphone Samsung Galaxy S4 coming in April, analysts have suggested that Samsungs may see its profits reach an all-time high this quarter, with the company getting around 70 percent of its profits from its mobile devices division.
Natalie Booth, head of search at theEword, said: “The strong sales of Samsung’s smartphones has helped the company to perform well in the first quarter of the year, while Apple has faced iPhone shipments falling by 30 percent to 30 million during the period.”