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12 February 2013

Samsung leaves Apple flatfooted in smartphone wars


The demand for shiny and sophisticated smartphones appears to be unstoppable. Samsung Electronics and Apple have both revealed very healthy growth, with analysts predicting the South Korean firm sold around 63 million smartphones in the fourth quarter, while Apple achieved a new record by selling 47.8 million iPhones.
While Samsung announced quarterly profits up 76 per cent on the back of Galaxy smartphone sales, it also indicated that these golden days might be nearing an end. "The furious growth spurt seen in the global smartphone market last year is expected to be pacified by intensifying price competition, compounded by a slew of new products," Samsung said in announcing its earnings statement.


The company's share price fell 2.5 per cent on this signal that a slowdown is likely in Samsung's first quarter of this year.

Apple fared even worse. iPhone shipments fell below analyst forecasts of 50 million units for the quarter, and growing fears that the company has no new products on the horizon caused its share price to nosedive.

Despite reporting record quarterly revenue of $54.5 billion (€40.5 billion) and a record quarterly net profit of $13.1 billion , Apple's stock fell 12 per cent after it reported earnings, the biggest percentage drop in over four years, removing more than $50 billion from the company's market value.


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