Samsung Electronics Co, the world's largest technology company by revenue, expects record earnings for the fourth quarter of 2012 as shoppers continued to snap up its smartphones and tablets.
The company on Tuesday said its
operating profit for the October-December quarter would be about 8.8 trillion won ($8.3 billion), up 89 per cent from a year earlier and higher than expectations.
It will release its full quarterly result including net profit at the end of this month.
The maker of Galaxy smartphones and tablets said fourth quarter revenue likely rose 18 per cent from a year earlier to 56 trillion won.
Analysts said nearly 70 per cent of the operating income for the quarter was likely
generated by Samsung's mobile division that makes and sells smartphones and tablets.
According to a media reports, Samsung's profit for the fourth quarter hit record on the back of the
500 handsets it sells every minute, amid pick up in demand for the flat screens it makes for mobile devices, including those for rival Apple Inc products.
Samsung's mobile business, which recently overtook Apple in smartphone sales and Nokia in mobile handsets, has driven Samsung's earnings growth in recent quarters.
Samsung's quarterly operating profit has risen steadily since the final quarter of 2011, while rival mobile-phone makers such as Nokia, Research In Motion and HTC have experienced falling market share and profits.
Samsung shipped at least 60 million smartphones in the last quarter of 2012, according to analysts' estimates, about 10 per cent growth from the previous quarter.
The launch in September of the Galaxy Note II, a
giant smartphone with a 5.5-inch screen and a digital pen, helped Samsung retain its market dominance during the Christmas holiday season despite competition from Apple's iPhone 5, analysts said.
The
surprise popularity of the Note II device prompted other handset makers to increase the screen size of their smartphones as consumers embrace a wider mobile-phone screen to watch videos.
Samsung's flagship Android device,
the Galaxy S III, also sold strongly.
Market watchers speculate that Samsung will introduce a new Galaxy S smartphone, likely to be named the Galaxy S IV, before the end of April.
Samsung usually rolls out the latest iteration of its Android-based flagship smartphone before the end of the second quarter, taking advantage of the time when rivals are months away from introducing new smartphone models.
With the early rollouts of the new Galaxy S model and an update to the Note series later in the year, analysts predict Samsung will sell at least 300 million smartphones in 2013, widening its lead over Apple.
Samsung's smartphone shipments likely surpassed 200 million for the first time in 2012.
Shares of Samsung Electronics fell 1 per cent in Seoul after earnings release. Samsung's shares, which gained 11 per cent in the fourth quarter, hit a record high level earlier this month.
If Samsung's fourth quarter results are in line with Tuesday's guidance, the company will report 29 trillion won ($27.3 billion) operating profit on revenue of 201.1 trillion won ($189 billion) for 2012.
Associated Press
PHOTO: Associated Press 
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