Samsung has posted a record fourth-quarter profit, due to strong smartphone sales and higher margins in its chip business.
The South Korean company stated on Friday that its fourth-quarter profit rose 76 percent to a net of $6.6 billion.
The profit represents a new record for the company, who is currently the world’s largest manufacturer of smartphones, according to CNN.
Samsung stated in a press release about the profit:
“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.”
The company’s share price had previously seen a slump of more than two percent in Seoul after the company predicted consumers will purchase fewer smartphones in 2013. Samsung explained:
“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.”
Mercury News adds that analysts believe that Samsung will continue to see a rise in smartphone sales this year, especially because its low- and mid-priced models have no competition from Apple.
Analysts also forecast that Apple will see its iPhone sales plateau in 2013, because of continued high pricing. Samsung surpassed Apple in 2012 to become the world’s largest vendor of smartphones. It is expected to keep the title. Samsung shipped 213 million smartphones worldwide last year.
The company’s 2012 shipment volume, like its fourth-quarter profit, is also a record. Samsung shipped the largest number of smartphones ever by a smartphone vendor in one year. Apple came in second with 135 million, while Nokia came in third.