Samsung Electronics, the iPhone’s main adversary, estimated its January-March operating profit rose 53 percent to 8.7 trillion won ($7.7 billion) as sales of mid-tier smartphones helped the South Korean giant tide over the off-peak season.<\/p>\n
The guidance, released ahead of full quarterly results by April 26, was better than an average forecast for 8.3 trillion won in a poll of 42 analysts by Thomson Reuters I\/B\/E\/S.<\/p>\n
That marks the end of five straight quarters of record profits for the world’s biggest technology firm by revenue. But analysts say earnings will hit a new high in the current quarter as Samsung’s Galaxy S IV smartphone hits the market this month.<\/p>\n
The Galaxy S and Note series have fuelled Samsung’s record-breaking earnings growth and made it the No.2 player in the global premium smartphone segment after Apple Inc. But as the high-end market swarms with new offerings, Samsung is turning to less affluent customers in emerging markets, offering cheaper models such as the Rex and Galaxy Pop, analysts said.<\/p>\n
Samsung capitalised on its 30-plus smartphone models that cover nearly all price points to boost shipments to a record in the first quarter while the post-year end holiday season sapped sales at chief rival Apple, according to the analysts.<\/p>\n
Samsung, valued at around $220 billion, estimated its first-quarter sales at 52.0 trillion won, versus a market forecast for 53.0 trillion won.<\/p>\n
The South Korean firm likely sold 68-70 million smartphones, up from 63 million in the December quarter, according to five analysts.<\/p>\n
By comparison, Apple’s iPhone shipments likely slumped some 30 percent to the 30 million range from 47.8 million in the previous quarter, they said.<\/p>\n
Shares in Samsung, worth around $220 billion, fell 3 percent over the past three months, beating a 2 percent drop in the wider market. Apple lost 19 percent in the same period.<\/p>\n
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