Stellar Galaxy sales lift Samsung to new profit heights
South Korean company rides to record profit in third quarter but will face challenge from Apple and Microsoft's re-energised product lines
Samsung Electronics, the world's biggest maker of televisions and mobile phones, reported a record third-quarter profit that beat analysts' estimates as surging sales of Galaxy smartphones widened the lead over Apple's iPhone.
Earnings at the mobile-phone business increased after the introductions of the Galaxy S III phone and the Note II tablet helped the company compete against Apple, a key customer and opponent in patent lawsuits on four continents.
Samsung faces a tighter marketplace this holiday shopping season after Apple refreshed its product line with a new iPhone, mini iPad and upgraded iPad, and Microsoft released its Surface tablet.
"The mobile-phone number came out very strong," Kim Young-chan, an analyst at Shinhan Investment, said. "It again confirms there's no real competitor out there other than Apple. Samsung's competitiveness in smartphones will be maintained for a while as the Samsung-Apple duopoly continues."
Competition would likely intensify in the fourth quarter amid concern the global economy might slow, Samsung said. The company said it would focus on high-value products to maintain its momentum and would try to boost sales of tablet computers with more pen-equipped models and cheaper devices.