Samsung posts record profits of almost $6bn

The world's largest technology firm by revenue also saw a record operating profit in July-September of ?8.12tn, up 91% from the same period last year.

Samsung said its mobile communications business took in ?26.25tn in revenue for the quarter, accounting for more than half the company's total.

"The business environment remained difficult with global economic uncertainties persisting amid the fiscal concerns in the US and Europe," said Samsung senior vice president Robert Yi.

"However, we continued to break our quarterly profit records," Yi said.

The third quarter net profit figure was well up from the ?3.4tn net profit posted a year ago and beat the previous record of ?5.19tn set in April-June.

Sales surged 26.4% year-on-year to an all-time high of ?52.2tn.

Despite the record profits, Samsung shares fell 2.65% to close at ?1.287m.

Analysts expect the technology giant to see a marginal fall in income in the final quarter, as retailer sales peak in the third quarter ahead of the holiday season and technology companies ramp up spending on marketing for the year-end rush.

However, they said Samsung's telecommunications business will continue to drive profit with its latest offerings of high-end mobile products, such as its flagship Galaxy S III smartphone.

"We expect Samsung will deliver solid earnings growth with product leadership in the consumer branded business, smartphone and TV sectors and show enhanced bargaining power in the component business, semiconductor and display panel sectors," Citi said in a report.

However, Samsung shares were down 1.8% at ?1.298m won in morning trade on profit taking, brokers said.

The company said its display panel business helped drive its record, with a ?1.1tn operating profit in the third quarter, compared with a ?90bn loss the previous year.

It says increasing demand for panels for smartphones and other high valued-added products, such as LED panels for TVs and LCD panels for tablets, offset weak demand for laptop and monitor panels.

Samsung's operating profits have risen each quarter since the first three months of 2011 as booming smartphone sales helped it leapfrog Apple as the world's biggest maker of the devices.

According to research firm IDC, Samsung sold 56.3m smartphones between July and September, representing 31.3% of the global market, more than twice the 15% market share held by Apple.

The bitter rivals are currently involved in a legal duel being fought in 10 countries over alleged patent infringements.

Samsung was dealt a blow in August when a US federal jury ruled that it infringed some of Apple's design and software patents and fined it more than $1bn. Samsung has appealed against the ruling.

On top of the competition for smartphones, the firms are also tussling over the tablet market.

The South Korean firm launched the Galaxy Note II, which is between a phone and a tablet, at the end of September and this week Apple unveiled the iPad Mini.

Galaxy S III shipments have been estimated at 18m units for the third quarter, while smartphone and overall mobile device shipments are projected at 59m and 106m units respectively.

Source: AFP via I-Net Bridge