Samsung to report record quarterly profit

Samsung are plugging away at the mobile device market without a care in the world. Their flagship phone handset, the Galaxy SIII is selling like crazy and has been gaining plaudits from reviewers and users everywhere.

What better way to put a few court decisions behind you than to announce a record operating profit for the three months up to the end of September. An increase of 25% over April to June and nearly double 2011’s Q3, the 8.1 trillion Korean won ($7.3 billion or £4.5 billion) has been achieved thanks to strong sales of the SIII and high-end TVs.

Analysts predict it won’t end there either, with Samsung increasing the pressure on Apple’s iPhone 5 and other mobile devices in the already competitive $200 billion (£123.5 billion) global smartphone market. Samsung are expected to record a 28 trillion won profit for the year. They may also have to set money aside if they are unsuccessful in appealing the verdict in the patent infringement case where more than $1 billion have been awarded to Apple.

Lee Sun-tae, an analyst at NH Investment & Securities has said:

Fourth-quarter profit will be pressured by one-off expenses: performance payouts and some $1bn in legal provisioning relating to the Apple litigation. Excluding those, core earnings will remain solid and a swing factor is how much Samsung spends on marketing.

Strong phone sales helped Samsung balance the drop in profit of its chip business, as DRAM prices dropped by 14% in Q3. But they will need to stay alert as competitors in the smartphone market have their own strong product line-ups. Byun Han-joon, an analyst at KB Investment & Securities has said:

The biggest risk for Samsung is competitive product line-ups from its rivals such as the iPhone 5. Because handsets drive most of its profits, one misstep in handsets could result in losses for the whole Samsung group.

Samsung are currently adding to their diverse range of mobile devices. The latest Galaxy Note is expected to hit the shelves this month in the US and the ATIV range of Windows Phone 8 handsets are due to hit early November to compete directly with the Nokia Lumia range.

Source: The Guardian | Images courtesy of Samsung

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13 Comments

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Ithink samsung's next best move is to open stores in the USA that just carry Samsumg products. I am getting a Smart TV this year. I want the 55" or 60" if the price drops a bit. Right now I can get the 55" 120hz for under $1900. The tv is smokin hot compared to the LG 42" I bought 4 years ago.

I have the GS3 which is by far the best phone I have owned to date. The best Android device I had before was the HTC Droid Incredible. I was an HTC fan for years as I have had 5 handsets from them, which si the most I have own from a single phone maker. But they lost their way and so did Aple as I tried 2 iPhoen models.

Samsung is making the most compelling produces now and the Apple lawsuits have actually helped them become a USA household brand. Samsung has over 40% of the Android phones sold. They should just drop ever phone and just sell the Galaxy S, with a entry model, mid-ranged model and a high-end model. The Note woykd be the highend and the Note 10.1 would be to dog tablet.

As soon as VZW gets the Note II I am on it to replace my GS3.

My iPad is next to die as soon as I get a Samsung Windows 8 tablet. With the exception of one device my wife will have, my home will be Apple-free and Iwill never buy another from them ever.

Apple products are going to crap anyways. Once they drop Samsung for making the chips inside, the iPhone will simply be an expensive POS with inferir hardware inside that will break and catch on fire or whatever. Appledays on top are starting to set.

Oh and court decision will be overturn for violating Samsungs rights to a fair trial, because Apple tampered with a witness, and APple producced BS evidence that the court allowed APple to present, but didnt offer the same to Samsung.

Now for those who were crying for samsung read this. they are becoming a giant monster. the products may look nice but seriously is not top quality. don't get me wrong. I like the competition, but cheating is what I am against

S3P€hR said,
Now for those who were crying for samsung read this. they are becoming a giant monster. the products may look nice but seriously is not top quality. don't get me wrong. I like the competition, but cheating is what I am against

i dont think people care how big samsung is... they were still "big" before they became as popular as they are now in the mobile department.

Well this is gonna be short lived. The price wars will commence any time soon. It is just simple economics. In such a fiercely competitive market you cannot expect all businesses to continue making 50% margins. It is just a matter of time before they slit each other's throat. Actually i think it is already in its initial stages between Nokia and HTC.

Liaqat_ali said,
Well this is gonna be short lived. The price wars will commence any time soon. It is just simple economics. In such a fiercely competitive market you cannot expect all businesses to continue making 50% margins. It is just a matter of time before they slit each other's throat. Actually i think it is already in its initial stages between Nokia and HTC.

Err what? What does Nokia and HTC have to do with this? Last I checked Nokia can't even come close to Samsung since Nokia is more or less currently on Phones, Samsung on the other hand is doing multiple consumer electronics, TV's, phones etc.

Liaqat_ali said,
Well this is gonna be short lived. The price wars will commence any time soon.

So long as the sheep keep lining up for Apple products for no reason other than religious devotion, no one will have to lower prices. Apple will never lower their prices, because that's just not what they do, and because they don't have to; their cult members will pay anything. Undercutting Apple just enough to clearly be the cheaper option is all Samsung or anyone else will do.