New televisions are displayed at the Samsung booth on the first day of the Consumer Electronics Show in Las Vegas (Photo : Reuters)
Samsung's quarterly sales soared past Apple's earnings in spite of considerable push back from the iPhone 5 in the last few months of 2012, but experts suggest that the Korea-based company's latest surge may also be a 'risk factor,' according to a Bloomberg report.
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Daewoo Securities Co. analyst James Song explains, "Samsung was the major beneficiary of slower-than-expected sales of Apple's iPhone 5. The biggest challenge ahead is whether it can maintain its competitiveness in the smartphone market as high-end products are expected to be released by big players like Apple and Google."
Daewoo's figures indicate that Samsung's revenue was bolstered by 62 million smartphone sales in the third fiscal quarter of the year, meanwhile consumers purchased 17 million less Apple handsets.
"The biggest risk factor is the strengthening Korea won. In the longer term, possible price competition in the smartphone risk also poses a risk," says analyst Sean Kim of Standard Chartered Bank Pic.
Bloomberg notes that Samsung's flagship smartphone and phablet, the Galaxy S III and Galaxy Note II, accounted for an 18 percent increase of income, and contributed greatly to the company's $56 trillion revenue. As for the overall big picture, Samsung's profits leaped a staggering 89 percent over the quarter, raising operating profit to $8.3 billion.
Taurus Investment Securities Co. analyst Kim Hyung Sik adds, "Earnings will continue flying high. Samsung's wide range of businesses is paying off handsomely."
Experts argue that Samsung's diverse selection of devices, ranging from smartphones to tablets, phablets, laptops, televisions, and more grant them an overwhelming competitive advantage.
Neil Mawson, executive director of Strategy Analytics recently told Reuters that "Samsung plays in more segments and this should enable it to capture more volume than Apple."