6 Oct 2012

Record profits tipped by Samsung

8:48 am on 6 October 2012

Samsung Electronics expects record profits in the three months to September, led by strong sales of its Galaxy smartphones.

The company said on Friday it expects operating profits of 8.1 trillion won ($US7.3 billion), nearly double last year's figure. Samsung shares later rose by 1.5%.

The BBC reports smartphone sales drive much of the profit at the company which also makes screens, semiconductors and televisions.

Analysts said the record profits were largely driven by gains in that sector offsetting other parts of the business which are not showing drastic change.

Samsung was ordered by a federal court in California in August to pay more than $US1 billion in damages to Apple after Apple accused the South Korean company of violating several of its patents.

Samsung is now seeking a retrial. The company is due to officially report full earnings later this month.