Samsung Expecting Record Profit Thanks To Galaxy Phone Sales

Samsung electronics is reporting a record quarterly profit of $7.3 billion, its fourth straight record profit in a row thanks to strong sales of its Galaxy smartphone line. Unfortunately, Samsung’s record profits are expected to end with this quarter as Samsung ramps up marketing efforts to combat the iPhone 5 and other rival products. Not to mention Samsung will have to set aside more than $1 billion in damages for payment to Apple for patent infringements should an appeal no go through.

Samsung Galaxy smartphone line accounted more than 2/3rds of the company’s record quarterly profits. Smartphone shipments are estimated around 58 million, which includes 18-20 million Galaxy S III devices.

Strong handset sales made up for reduced profits in Samsung’s chip business, consisting of of their DRAM chips used in computers and mobiles, which dropped 14 percent. Samsung is expected to cut its investment in chips next year due a drop in overall demand. Samsung will instead continue to focus on beefing up its product line-up, with sales of new Windows computing systems and the Galaxy  Note 10.1 and Note II devices.

In fact, even with the Apple legal defeat still fresh in everyones mind, it didn’t hurt Samsung enough to prevent the company from becoming the 9th most valuable brand in the world.

Reuters

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