Skip to main content

Samsung profit soars to $6.6 billion record

By Ramy Inocencio, for CNN
January 25, 2013 -- Updated 1117 GMT (1917 HKT)
STORY HIGHLIGHTS
  • Samsung 2012 Q4 profit soars 76% from year before
  • Share price slides as company predicts slower 2013 smartphone demand
  • South Korean tech giant cites price competition, new products as 2013 challenges
  • Samsung was largest vendor of smartphones in 2012, shipping 213 million units worldwide

Hong Kong (CNN) -- Samsung Electronics posted a profit of $6.6 billion in the last three months of 2012 marking a 76% increase from the previous year.

While this represents a new record quarter for the world's largest maker of smartphones, Samsung's share price had slumped more than 2% by mid-day trading in Seoul after the company predicted consumers will buy fewer smartphones in 2013.

"The furious growth spurt seen in the global smartphone market last year is expected to be pacified by intensifying price competition compounded by a slew of new products," said Samsung in a press release.

"In the first quarter, demand for smartphones in developed countries is expected to decelerate, while their emerging counterparts will see their markets escalate with the introduction of more affordable smartphones."

Is Apple losing its bite?
War of the smartphones
Tokyo court rules in favor of Samsung

Samsung's quarterly earnings release comes one day after Apple, its biggest rival in the smartphone and tablet markets, also announced record quarterly earnings of $13.1 billion in its last quarter.

However, Apple's share price plunged more than 12% after the company missed its revenue estimate by about $200 million. Analysts had expected quarterly revenue of $54.7 billion; Apple announced actual revenue of $54.5 billion. iPhone and iPad sales, which continued to be strong, failed to impress investors who have become used to the tech giant far exceeding its own sales and profit forecasts.

Samsung, which surpassed Apple as the world's largest vendor of smartphones in early 2012, maintained its number one position for the year by shipping 213 million smartphones worldwide, according to Strategy Analytics.

"Despite tough competition in stores and courtrooms, Samsung continued to deliver numerous hit models, from the high-end Galaxy Note2 phablet to the mass-market Galaxy Y," wrote Neil Mawston, executive director at Strategy Analytics, in a press release.

The company added Samsung's 2012 shipment volume was the largest number of units ever shipped by a smartphone vendor in a single year.

Apple followed in second as its global smartphone shipments grew 46% in 2012 sending more than 135 million smartphones around the world. The Finland-based Nokia kept its third place position.

ADVERTISEMENT
Part of complete coverage on
July 16, 2014 -- Updated 1634 GMT (0034 HKT)
With cyberattacks on the rise and here to stay, it's a modern-day challenge for people and businesses to get smarter about preventing them.
July 20, 2014 -- Updated 1524 GMT (2324 HKT)
Evidence points to pro-Russian separatists as perpetrators of the attack and Vladimir Putin is facing uncomfortable questions, David Clark writes.
July 3, 2014 -- Updated 0902 GMT (1702 HKT)
Macau has overtaken Switzerland in the wealth stakes, being named the world's fourth richest territory by the World Bank.
July 18, 2014 -- Updated 1447 GMT (2247 HKT)
Saudi Arabian Bateel brand is best known for its delectable dates but it now has more than a dozen cafes and a new bakery in the works.
July 17, 2014 -- Updated 1100 GMT (1900 HKT)
A British nanotech company has created what it says is the world's darkest material. It is so dark the human eye can't discern its shape and form.
July 16, 2014 -- Updated 1602 GMT (0002 HKT)
Jibo robot is designed to be an organizer, educator and assist family members. CNN's Maggie Lake met him and says she was impressed with his skills.
July 18, 2014 -- Updated 2109 GMT (0509 HKT)
American burger joints have sprung up all over London, but how to know which ones are best? CNN's Jim Boulden investigates.
June 18, 2014 -- Updated 1222 GMT (2022 HKT)
Sandwiched in between Iraq and Syria, Jordan's destiny seems to be one of a constant struggle for survival. John Defterios explains.
June 18, 2014 -- Updated 1502 GMT (2302 HKT)
At the last football World Cup, it was all about 3D. This time around, it's nothing less than 4K.
July 16, 2014 -- Updated 1058 GMT (1858 HKT)
Bob Mazzer has photographed inside London's Tube network for 40 years. He's captured history.
July 18, 2014 -- Updated 1712 GMT (0112 HKT)
Exotic animals are becoming a profitable business opportunity for Nicaraguan entrepreneurs. CNN's Rafael Romo reports.
June 13, 2014 -- Updated 1529 GMT (2329 HKT)
Iraq produces 3.3 million barrels per day and has the world's fourth-largest oil reserves. But the current crisis is putting all this in danger.
June 18, 2014 -- Updated 1222 GMT (2022 HKT)
Sandwiched in between Iraq and Syria, Jordan's destiny seems to be one of a constant struggle for survival. John Defterios explains.
June 16, 2014 -- Updated 1314 GMT (2114 HKT)
The gas standoff between Russia and Ukraine could have a knock-on effect on Europe. Explore this map to find out why is the EU nervous.
July 16, 2014 -- Updated 1058 GMT (1858 HKT)
Bob Mazzer has photographed inside London's Tube network for 40 years. He's captured history.
June 17, 2014 -- Updated 1206 GMT (2006 HKT)
The UK capital promotes its tech stars and shows it can compete with Silicon Valley. Here are five companies that pitch to make it big.
ADVERTISEMENT