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Samsung Galaxy S3 drives 76 per cent profit share increase for Samsung

Samsung Galaxy S3 sales are the major contributor behind Samsung Electronics’s 76 per cent profit share increase.

The electronics manufacturer saw its net income rise to a record 7.04 trillion won (£4.1 billion) in Q4 2012, from 4.01 trillion won (£2.4 billion).

Samsung Galaxy smartphones, including the Samsung Galaxy S3 and Samsung Galaxy Note 2, have outsold the Apple iPhone range for a fourth straight quarter, with the Korean manufacturer being crowned top smartphone retailer last year over rival Apple.

An increase in sales of the Galaxy smartphones makes the devices the key source of profit growth for Samsung. The operating profit from the smartphone and tablet division was 5.44 trillion won (£3.2 billion) in Q4, more than doubling the 2.56 trillion won (£1.5 million) earned in Q4 2011.

Analysts suggest that Samsung shipped more than 60 million smartphones last quarter, although official figures haven’t been released by Samsung. This suggests Samsung’s total smartphone shipments for 2012 are at over 200 million.

Comparatively, Apple announced on Wednesday that it sold 47.8 million iPhones in the quarter.

News of Samsung’s strong position comes after Apple announced a 12 per cent fall in share prices in the US. Despite record quarterly revenue of $55 billion (£35 billion), there was disappointment in the sales figures of the Samsung Galaxy S3 rival, the Apple iPhone 5, which didn’t manage to reach its quarterly sales target of 50 million.

However, in its earnings statement Samsung warned that increased competition in the smartphone sector could lead to a demand decrease.

“The furious growth spurt seen in the global smartphone market last year is expected to be pacified by intensifying price competition, compounded by a slew of new products,” the South Korean company said.

“In the first quarter, demand for smartphones in developed countries is expected to decelerate, while their emerging counterparts will see their markets accelerate with the introduction of more affordable smartphones and a bigger appetite for tablet PCs throughout the year.”

With Samsung Galaxy S4 hype strengthening, Samsung’s newest smartphone could continue to boost its market lead and its profit share rise.

Do you prefer the Samsung Galaxy S3 to the Apple iPhone 5? Give us your thoughts in the comments section below.

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