Samsung Eclipse earnings Estimates as Galaxy Lineup Overshadows iPhone 5 - AAPL

Northern, WI 1/12/2013 (avauncer) - The last quarter of 2012 yielded better than expected profits for Samsung Electronics Co. (005930) as its new line up over-shadowed the competing iPhone5 form rival Apple Inc. (NASDAQ: AAPL). As per the pre-audit estimates released today operating profits for the December quarter rose 89% to a record breaking level of 8.8 trillion wons. The post - audit figure could vary by 200 billion wons. Net income and divisional segregation were not disclosed.

The launch of the Galaxy-SIII & Galaxy Note-II boosted revenues by 18% to 56 trillion won. Daewoo Securities Co., estimates 62 million units were sold while Apple Inc. (NASDAQ: AAPL) could sell only 45 million iPhones. According to James Song who is an analyst with the same firm said “Samsung was the major beneficiary” from the lagging sales of iPhone5 however it would still have to struggle to “maintain its competitiveness“ in the high-end Smartphone market amid the new product lineups of Apple Inc. (NASAQ: AAPL) and Google Inc. (NASDAQ:GOOG), a stronger won and the price war in the global Smartphone industry.

A Bloomberg survey reported the telecommunications division earned 5.72 trillion won despite an increase in the marketing expenses amid a dry year-end holiday season. Display unit earned 1.06 trillion won against a 220 billion won loss last year.

Strong sales of mobile devices also boosted a rapid climb in the sales of its ultra slim organic light-emitting diode displays OLED). The Chip - business earned 1.52 trillion wons in the December quarter. This was down from 2.31 trillion won last year. The consumer electronics division reported declines from 620 billion wons to 530 billion wons this year despite a stable revenue stream this year. Korean won rose 9% during 2012 and it could go as high as 1,030 per dollar during 2013. On the other hand the plunge of Japanese yen boosted Japan based rivals.

Analysts predict the Galaxy S IV, could possibly boost sales for the second quarter but during the first quarter cannibalization of the Galaxy-SIII market and the $1.05 billion provision for damages under a patent-lawsuit with  Apple Inc. (NASDAQ: AAPL) could deplete earnings. The Korean company has no plans to pursue injunction plaints against Apple Inc. (NASDAQ:AAPL) in Europe, keeping in view the “of protecting customer choice”.

Shares of Apple Inc. (NASDAQ:AAPL) were up 0.27% to $525.31.