Telecom Lead Asia: Encouraged by Q3 2012 financial performance, Samsung is more confident to sell smartphones and tablets in the next quarter than Apple.
The October-November-December quarter is fourth quarter for Samsung and first quarter for Apple. But both of them depend on this holiday season. The success will depend on new products for both Apple and Samsung. The recent patent issue may affect Samsung’s sales in the U.S.
Amazon, Google and Microsoft will pose challenges with their new products to the top two players in the smartphone market.
In the fourth quarter, the smartphone market is expected to continue its growth momentum with increased demand, especially in emerging markets.
Samsung plans to further cement its leadership in the smartphone market with premium products, including GALAXY S III, and by ramping up sales of GALAXY Note II.
For the December quarter, Apple forecast revenue of $52 billion, below the average estimate of $55 billion, according to Reuters.
The American devices major heads into the current quarter after refreshing almost all of its product lines, including introducing an upgraded, fourth-generation full-sized iPad. The December quarter will show how well consumers respond to its latest gamble – the iPad mini – which goes on sale on November 2.
Despite the lackluster fourth quarter, Apple put up big numbers for the year, ending its fiscal 2012 with a 45 percent increase in revenue to $156.5 billion, while net income was up 61 percent at $41.7 billion.
For the final fiscal quarter, Apple posted net income of $8.2 billion on revenue of $35.96 billion, versus $6.6 billion, a year earlier.
Samsung last week said its IT & Mobile Communications division, comprising Mobile Communications, Telecommunication Systems, IT Solutions and Digital Imaging, ended the third quarter with operating profits of 5.63 trillion won on 29.92 trillion won in revenue.
Samsung said year-end seasonality will push up demand for mobile devices including tablet PCs, as new products make their way into markets with more competitive pricing. Year-end holiday promotions, robust demand in emerging markets and China’s New Year holiday effect are expected to shore up demand for IT products.