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Friday, 07 October 2011 11:18

Samsung grows thanks to smartphones

Written by Nick Farell


Heading toward being the Apple killer
Samsung Electronics said its quarterly profit will do better than anyone thought thanks to smartphones. If this is true then it seems that Samsung to report record profit from handset sales in the third quarter and overtake Apple as the world's biggest smartphone vendor in unit terms. It can't compete with Apple's mark up of course.

The South Korean outfit estimated its quarterly operating profit at $3.5 billion. That would be down 14 percent from a year ago but up 12 percent from the preceding quarter. Detailed earnings for July to September will be released later this month.

Growth and strong profit margins from its telecom business mark a big transformation for a company, which has relied for years on its mainstay computer memory chips to boost profit. Last year it was hardly known in the smartphone market. Analysts say Samsung is one of the best placed companies to deliver something fresh and exciting to rival Apple. It already makes the closest competing tablet by sales to Apple's iPad.

Apple is so worried by the rise of Samsung it has been carrying out some rather questionable legal antics to have the outfit's products off the shelves.

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