Samsung Scores $8.3 Billion Profit, Thanks to Galaxy Phones

Samsung is having one heck of a time. Thanks to the very successful Galaxy range of smartphones, Samsung reportedly earned a quarterly profit of $8.3 billion. In fact, the demand for flat screen displays which Samsung makes has also soared with even rivals Apple using them.

Samsung has outpaced Apple – its biggest rival and biggest customer – despite the U.S. firm’s launch of the latest iPhone 5, with sales momentum boosted by its Galaxy Note II phone-cum-tablet, or ‘phablet’, in the fourth quarter. IPhone 5 sales were a little below expectations, analysts said.

I guess the winning point for Samsung is that, while Apple launched just one smartphone in a year, Samsung went ahead and launched 37 different smartphones tweaked to user requirements in different parts of the globe. By comparison, Taiwan’s HTC Corp released 18 models, Nokia 9 and LG Electronics 24.

HTC on Monday said its fourth-quarter profit slumped more than 90 percent as its sales continue to trail those of the Galaxy range and the iPhone.

The Samsung Galaxy S IV is expected to be launched in a few months from now. While analysts believe that with no new launches in between, sales might drop, but we think once the Galaxy S IV is launched, it will make up for any loss of sales, if at all, during this period.

“Samsung’s smartphone shipments are likely to grow even in a seasonally weak first quarter. The early launch of the Galaxy S IV would drive second-quarter growth momentum,” said BNP Paribas Securities analyst Peter Yu, who predicts Samsung’s 2013 operating profit will grow 25 percent to almost $35 billion.

Samsung is expected to increase its smartphone sales by more than a third this year, and widen its lead over Apple as it offers a broader range of mobile devices, said Neil Mawston, executive director at market researcher Strategy Analytics, which forecasts Samsung will sell 290 million smartphones this year, up from a projected 215 million in 2012.

Samsung said its October-December operating profit jumped 89 percent to 8.8 trillion won from a year ago, just ahead of a forecast for 8.7 trillion won by 16 analysts surveyed by Reuters. That is 8.6 percent higher than its previous record of 8.1 trillion won in July-September.

Prateek Panda

Prateek is the Founder of TheTechPanda. He's passionate about technology startups and entrepreneurship and enjoys speaking to new founders every day. Prateek has also been consistently regarded as one of the top marketing experts in the region.

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