Samsung Reports $7.3 Billion Quarterly Profit
Samsung may be forced to pay Apple $1.1 billion over its ongoing patent dispute but that charge is just a drop in the bucket for the technology firm. Samsung on Thursday announced a fourth straight record-breaking quarter in which the company took in $7.3 billion.
Samsung executives also announced that the Galaxy line of smartphones has been the main driver of company profits despite stiff competition and lawsuits from main competitor Apple, Inc.
Lee Sun-tae, analyst at NH Investment & Securities, revealed:
“Fourth-quarter profit will be pressured by one-off expenses: performance payouts and some $1 billion in legal provisioning relating to the Apple litigation. Excluding those, core earnings will remain solid and a swing factor is how much Samsung spends on marketing.”
The leading maker of memory chips and televisions has now reached a valuation of $197 billion, and it is expected to record an annual profit of $25 billion. If that level is reached almost all of Samsung’s 206,000 employees are expected to receive performance bonuses.
Samsung profits could soar further in 2013 as the company prepares to lower its reliance on chip manufacturing as an economic market in collapse has decreased demand for those products causing DRAM prices to slip by 14 percent.
Samsung, in the meantime, has been witnessing an increase in Samsung Galaxy S III sales following various problems with Apple’s iOS 6 and iPhone 5. The increase in sales marks the first time that an Apple smartphone competitor has capitalized on failed iPhone technology to maintain a competitive footing.
Do you think Samsung technology will continue to turn out record profits into the foreseeable future?