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Samsung’s Earnings Surge 53%

Samsung Group Headquarters at Samsung Town, Seoul | Wikipedia

Samsung Group Headquarters at Samsung Town, Seoul | Wikipedia

Last Friday, Samsung announced their earnings in advance, showing that the company had stronger-than-expected operating profits for the first quarter of 2012. As it turned out, the South Korean tech giant earned ₩8.7 trillion or $7.7 billion.

Samsung’s Stronger-than-Expected Operating Profit

The said earnings represent 53 percent of Samsung profits during the first three months of 2012. That is a 15-percent increase from their revenue on the same quarter of the previous year. In relation to this, analysts had expected that the company will see ₩8.3 trillion in operating profit and ₩53 trillion in sales.

It is believed that the South Korean tech giant’s strong quarter was due to low-end and mid-level smartphones. The Galaxy S III also took a hit in the wake of Apple’s iPhone 5, while consumers are waiting for the Galaxy S 4 that will be available for pre-order on April 16.

Surging Samsung Sales, Slowing Apple Growth

Because of Samsung’s stronger-than-expected quarter prior to Galaxy S 4’s launch, industry pundits believe that Apple needs to launch a low-cost iPhone. This could be sold to subscribers without carrier subsidy.

With a struggling stock for the last six months, investors have expressed concern that Apple’s growth is slowing down because of emerging competitors like Samsung.

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