Samsung Beats Expectations in 4th Quarter

Samsung is now one of the largest companies for manufacturing and selling TVs. In last five months, the growth in the profits for this company is going on rising, whereas other companies in this sector are having a taste of bitterness in their profit and loss reports. This electronics giant has beaten all the expectations of analysts in this 4th quarter earnings season.

In the three month period, the operating profit of Samsung Company has rose up to 89% and Samsung has recorded its lifetime high revenues of $8.3 billion. The latest smart phones launched by Samsung company like Samsung galaxy note 2 or Samsung galaxy S 3 has caused the sales rate of the company to jump and rise to 18%.

Even the sales rate of Samsung smart phones has withstood the debut launch of apple’s iPhone 5. The apple’s iphone 5 compared to Samsung smart phones are on a down side because of the customers having a problem with glitches at iphone 5 when they are accessing the mapping software.

James song, an analyst of Daewoo securities Company commented on the earnings rate of Samsung. On his phone interview, he said that, “Samsung was the major beneficiary of slower-than-expected sales of Apple’s iPhone 5, The biggest challenge ahead is whether it can maintain its competitiveness in the smart phone market as high-end products are expected to be released by big players like Apple and Google.”

In the fourth quarter season, Samsung has sold almost about 62 millions of smart phones, while the apple company’s iPhone is on the sell rate of 45 millions. But to be on the downside, the sales of these smart phones are not gaining in market share in South Asian countries, where the company’s routes are.

IPhone 5 is leading in the market of these countries. In fourth quarter season, the earnings of Samsung smart phones in these countries have declined 1.3%. On the other hand, the sales of iPhone 5 in these countries are gaining in these countries. The sell rate of iphone 5 is also not declining on its route country USA. It is low but static.

In reviewing this position of Samsung company, Sean Kim, an analyst from standard chartered bank Plc, commented that- “Earnings may have disappointed some investors because expectations were rising ahead of the statement, The company also has to grapple with a stronger won, which dents the repatriated value of overseas sales. The biggest risk factor is the strengthening Korean won, in the longer term, possible price competition in the smart phone space also poses a risk.”

The achievement of Samsung Company has also had its positive impact on South Korean currencies. The currency rate is now 1,063 compared to the dollar today. It is going to be static on average 1030 this year. Analysts say that it is actually one of the highest profit figure for this company. Compared to other currencies of south Asian countries, the yen rate has fell down almost 12%, on the other hand South Korean currency raised almost 9%.

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Category: Computers and Technology
Keywords: Dow Jones, Samsung, Profit, Earnings, South Korea, Netflix, Low expectations, Earnings

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