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Samsung Electronics Record Surge in Profits -- City Index Asia

SINGAPORE -- (Marketwire) -- 01/29/13 -- City Index Asia -- Samsung Electronics have revealed a 76 per cent increase in profits for the last three months of 2012, with sales of its Galaxy smartphones thought to be a key factor in driving growth.

The Korean company's net income rose to a record 7.06 trillion won (£ 4.2 billion), a substantial increase on the 4.01 trillion won recorded during the same period last year, smashing the expectations of many analysts.

Last year was very successful for the company, as it became the world's main player in making smartphones, overtaking its main rival Apple, which saw shares tumble by 12.35 per cent in New York on Thursday (January 24th).

Analysts have attributed Apple's difficulties to disappointing sales of its new iPhone 5.

But Samsung has seen its profits driven by the success of the Galaxy smartphones and tablets.

Despite its success, the company did warn that competition in the smartphone sector could lead to softening demand.

It is that warning that analysts claim has caused Samsung's shares to slip on some European markets.

At 1144GMT during trading in Frankfurt, the company's shares were valued at EUR 287.15, a drop of 2.84 per cent.

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