Samsung Galaxy leaves Apple iPhone behind

Samsung Electronics, the world's top maker of televisions and mobile telephones, has reported a record profit surpassing analysts' estimates as it widened the lead over Apple in smartphone sales, thanks to its Galaxy devices.

Operating profit jumped 91 per cent to 8.1 trillion won (HK$56.7 billion) in the three months to September, the company said yesterday. The average of 32 analysts' estimates was 7.58 trillion won.

Earnings at the mobile-phone business surged 93 per cent in the quarter with the May debut of the Galaxy SIII and the Note, according to a survey of six analysts, helping mask a slump in profit from selling computer memory chips.

Television sales also helped Asia's biggest consumer electronics company, which lost a California patent trial in August to rival and key customer Apple.

"Smartphone sales were very solid," said Kim Young-chan, an analyst at Shinhan Investment. Smartphone shipments have increased significantly, easing concerns about marketing spending eating into profit."

The won strengthened to an 11-month high yesterday, a move that typically dampens the overseas earnings of companies when repatriated into local currency. Samsung got nearly 85 per cent of its revenue outside the country last year.

Samsung said third-quarter sales totalled 52 trillion won, compared with an estimate for 51.6 trillion won.