FollowWhat’s behind the amazing growth momentum of Samsung? The Korean tech giant, which reported a $6.6 billion profit for Q4 2012, says that its record growth is largely due to the solid sales of two of its Galaxy range smartphones – Galaxy S3 and Galaxy Note 2.
The world’s largest smartphone maker has remained ahead of Apple, its prime rival, for much of 2012 mainly because of its diverse product mix. Over the last three months, Samsung’s shares rose by 12 percent, whereas those of Apple plummeted by 20 percent.
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Samsung’s net profit for Q4 2012 is 75.6 percent higher than that of the previous quarter. The tech-firm’s chips sales and consumer electronics sales also contributed to the growth. Its mobile communications business generated revenue to the tune of $25.4 billion for the quarter, a 4-percent rise from Q3 2012. The company’s operating profits for Oct-Dec 2012 witnessed a gigantic 89.7 percent rise compared to the same period in 2011.
Samsung shipped 213 million smartphones last year. In fact, it is the only smartphone vendor to have shipped that many units over a 12-month period. Apple came second, and Nokia third.
While those statistics are amazing, Samsung says that the “furious growth spurt” witnessed in the smartphone market in 2012 is likely to die down as price competition increases and more products enter the market. For this year, the company expects a decrease in demand for smartphones in developed nations. However, the demand in emerging economies is likely to rise as more budget smartphones hit the market.
The Korean company, which has made a mark with its innovative product mix, has already revealed ambitious plans for the year. Its next addition to the Galaxy range is designed to compete with Apple’s iPad mini.
