Samsung Electronics sees smartphone sales slowing down in 2013

Korean electronics firm Samsung Electronics has posted record sales growth in the fourth quarter of 2012 underpinned by strong demand for mobile devices.

Korean electronics firm Samsung Electronics has posted record sales growth in the fourth quarter of 2012 underpinned by strong demand for mobile devices.

Sales in the fourth quarter of the year rose 7.4% to to 56.06 tn Won (£32.87bn ) from 52.18tn Won (£30.6bn) in the previous quarter, according to the group's earnings release for the fourth quarter of 2012.

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Its operating margin in EBITDA terms (Earnings before interest, tax, depreciation and amortisation) stood at 22% in the last three months of last year, compared to 23% in the third quarter of the year. By contrast, the corresponding fourth quarter of 2011 posted a 17% EBITDA margin.

Company results showed that competition had intensified with new smartphone and tablet launches amid strong seasonality. Even so, demand for smartphones increased quarter-on-quarter in both emerging and developed markets, the report showed.

However, the company expects intensified competition in its handset and tablet division, alongside a slowdown in smartphone sales growth rates, albeit accompanied by better conditions in the other business segments in which it operates. Handsets and tablets generated approximately 60% of the company's operating profits in quarter four of 2012.

Demand for tablets also increased due to mid/low-end new model launches and promotions by operators and retailers.

The company stated that the increased Galaxy Note II sales were due to upgraded pen function and enhanced mid/low-end line up.




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