Samsung profits top forecast as mobile biz doubles

Associated Press

SEOUL, South Korea (AP) — Samsung Electronics Co. reported Friday forecast-beating results for the fourth quarter of 2012 as profit from its mobile business more than doubled from a year earlier.

Samsung's October-December net income reached 7.04 trillion won ($6.58 billion), a 76 percent surge of 4.01 trillion won a year earlier. Analysts expected 6.95 trillion won in income according to FactSet.

Sales and operating income were slightly higher than its earlier preview. Sales rose 19 percent over a year earlier to 56.06 trillion won and operating income jumped 89 percent to 8.84 trillion won.

Increased sales of smartphones were the key source of its stellar profit. Samsung, which overtook Apple Inc. as the top smartphone maker last year, said its operating profit from the division that makes and sells smartphones and tablets more than doubled to 5.44 trillion won in the fourth quarter, from 2.56 trillion won a year earlier.

The company's component divisions that make semiconductor products and display panels also benefited from a rise in demand for smartphones. Sales of mobile processors that power popular devices such as Apple's iPhones and Samsung's own Galaxy smartphones boosted the bottom line.

The recovery in the display panel division was also led by strong sales of advanced mobile-phone screens called OLED, which are mostly found in high-end Samsung smartphones. The display division posted 1.11 trillion won in profit compared with a small loss a year earlier.

Analysts said Samsung will likely to see a continued rise in smartphone sales this year, especially in low- and mid-priced models where it sees no competition from Apple. Analysts forecast Apple, which keeps its iPhone price high, will sees iPhone sales plateau in coming years as more consumers snap up cheaper phones and more variety in screen sizes. Bullish analysts forecast Samsung smartphone shipments to rise as much as 50 percent this year from 2012.

Market researcher ABI Research said last month Samsung's 2012 smartphone market share topped 30 percent. In comparison, it said Apple's market share will peak at 22 percent in 2013 and remain flat through 2018, seeing a widening gap with Samsung.

Still, Apple's business has been more profitable because of the high price of the iPhone, which generates a larger profit per sales. Samsung, which makes dozens handset models a year and customizes them for mobile operators, also sells cheaper smartphones and spends about three times more on the expense called selling, general and administrative expense that include marketing and advertising costs for to promote its Galaxy brand.

Samsung's SG&A expense amounted to 12.67 trillion won ($11.84 billion) in the fourth quarter, 23 percent of its sales. Apple's SG&A expense was $3.85 billion in the same period, just 7 percent of its sales.

View Comments (1)

Recommended for You

  • David Cassidy prepares to auction Florida mansion

    FORT LAUDERDALE, Fla. (AP) — Like many of his baby boomer peers with grown children and debts to settle, one-time heartthrob David Cassidy is looking to downsize.

    Associated Press37 mins ago
  • Luggage piece found on French island near possible MH370 debris

    Part of a bag was found Thursday on the French Indian Ocean island of La Reunion not far from plane debris which has fuelled speculation it may be from missing flight MH370. "The piece of luggage was here since yesterday but nobody really paid attention," said Johnny Begue, a member of a local…

    AFP
  • Family Pet-Sitter Helps Herself To Homeowner's Possessions

    DEAR ABBY: A trusted and beloved family member who takes care of my cats -- and therefore has a key to my house -- has been stealing things like cleaning supplies, knickknacks, family pictures, etc. Most of them have little monetary value. But imagine my surprise when I spotted some of my missing…

    Dear Abby
  • Turkey onslaught on Kurds, after IS attack, fuels anger

    DIYARBAKIR, Turkey (AP) — Just when it seemed Turkey was getting serious about the fight against IS, it has turned its military focus to pounding its old foe: the Kurdish rebels.

    Associated Press30 mins ago
  • An American Dentist Killed Zimbabwe’s Famous Lion

    Cecil the lion, a famous black-maned resident of Zimbabwe’s Hwange National Park, died at the hands of an American dentist, conservationists claim. “Mr. Palmer shot Cecil with a bow and arrow but this shot didn't kill him,” Johnny Rodrigues, chairman of the Zimbabwe Conservation Task Force, said in…

    TakePart.com
  • Chicago man cleared after 17 years in prison shot dead

    CHICAGO (AP) — A Chicago man who served 17 years in prison for murder before being cleared of the crime has been shot and killed almost three years after being released from prison, police said Wednesday.

    Associated Press
  • Russia reassures Israel over Iran nuclear deal

    Russian President Vladimir Putin told Israeli Prime Minister Benjamin Netanyahu on Thursday that the deal on Iran's nuclear program would improve security in the Middle East and guaranteed that Tehran would not acquire nuclear arms. Israel plans to lobby the U.S. Congress not to approve the…

    Reuters
  • Dashcam catches off-duty cop threatening to put 'hole in head' of driver

    Technically Incorrect: A Massachusetts driver makes a wrong turn. What happens next, all filmed on his dashcam, has led to an investigation. And yes, it's now on YouTube.

    CNET
  • Play

    Body cam footage from Cincinnati shooting contradicts official story

    A University of Cincinnati police officer has been indicted for murder after body camera footage contradicted his official story outlining the events that led to the shooting death of unarmed Cincinnati driver Samuel Dubose.

    Reuters Videos
  • Hidden Security Cameras Are Shocking Surprise For Daughter

    DEAR ABBY: I'm a 19-year-old woman in college who still lives with my parents. I found out something several weeks ago that's bothering me, and I need advice badly. Years ago, after a robbery, my parents installed security cameras outside our house. I knew about them because they were visible. But…

    Dear Abby
  • Play

    Custom truck built by father and son stolen in Lemoore

    A Lemoore man is on the hunt for his stolen pick-up truck. The classic custom ride holds significant sentiment to its owner, who built the truck with his late father.

    KFSN – Fresno
  • Colorado theater shooter's dad saw wide-eyed smirk before

    CENTENNIAL, Colo. (AP) — James Holmes came home on winter break from graduate school looking haggard and making odd facial expressions, but his father didn't suspect at the time that he was descending into mental illness.

    Associated Press
  • Goat's head nearly severed in brutal knife attack in Idaho

    A small goat was nearly decapitated and another goat died from a "heinous" knife attack on the animals in a fenced and locked site where they had been placed to graze on weeds in northern Idaho, a police spokeswoman said on Wednesday. A third goat is being treated for a knife wound in its back from…

    Reuters
  • Taliban disavows Afghan peace talks after leader declared dead

    By Kay Johnson KABUL (Reuters) - The Taliban's official spokesman disavowed peace talks with the Afghan government on Thursday, throwing fledgling efforts to negotiate an end to 14 years of war into disarray. The statement came a day after the Afghan government said that Mullah Omar, the elusive…

    Reuters
  • Internet mauls dentist accused of illegal kill of popular lion

    Technically Incorrect: Walter Palmer, a dentist in Minnesota, has his Yelp entry attacked by those not fond of his allegedly illegal killing of Cecil the lion in Zimbabwe.

    CNET
  • Police Officer Involved in Deadly Cincinnati Shooting of Samuel DuBose Indicted for Murder, Dismissed from Force

    "I'm treating him like a murderer," prosecutor Joseph Deters said during a news conference when describing the warrant out for a police officer who killed Samuel DuBose, 43, earlier this month. Footage released today from a police officer's body cam lasts about 10 minutes and shows the shooting.…

    ABC News
  • Killer deal: Amazon will pay you $10 to buy a $30 Google Chromecast

    Google’s little Chromecast dongle is pretty awesome. The device plugs into the HDMI port on any HDTV or monitor and instantly gives users access to movies, TV shows, videos, music, photos and more that can be streamed from any Android device. Best of all, perhaps, the Chromecast is wonderfully…

    BGR News