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Samsung’s Profit Beats Wall Street Estimates

During the fourth quarter, Samsung sold over 62 million smartphones compared to 45 million by Apple

During the fourth quarter, Samsung sold over 62 million smartphones compared to 45 million by Apple

January 10, 2013 – Samsung Electronics Co., the largest maker in the world of televisions and mobile telephones reported earnings for the fourth quarter that were higher than expected as its Galaxy smartphones recorded sales that were able to withstand the debut of the iPhone 5 from Apple.

During the fourth quarter, Samsung sold over 62 million smartphones compared to 45 million by Apple. The company’s operating profit increased 89% to $8.3 billion during the three months that ended December 31. That figure was higher than what Wall Street estimates had been. Neither net income nor divisional figures were given by the company based in South Korea.

Sales increased by 18% helped by higher demand for the Galaxy S phones and the Galaxy Note II. Earnings for the mobile phone sector were doubled from one year ago during the same period, while iPhone 5 sales took a hit due to problems with the mapping software.

Analysts said Samsung benefited most by the slow sales Apple had with the iPhone 5 and the biggest challenge the company has going forward is whether it will be able to maintain its competitiveness within the smartphone market as Google and Apple are expected to release new high end products.

Samsung is in an ironic position, as it faces legal battles with Apple in a number of countries around the world, but Apple is also its largest customer.

Sales of Galaxy S III exceeded 30 million just five months following is launch in May, the company announced back in November. The company is also enjoying profits from the phone-tablet Galaxy Note II that it introduced in September. In late November, the company announced that sales of the Note had exceeded 5 million in early November.

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