Samsung profits soar, but legal issues remain
Smartphone division boosts Samsungs earnings, but concerns remain over patent rulings
A rapid increase in sales of Samsung’s mobile phones has seen the company’s operating profit surge 88 percent on the year to $8.27bn, while revenues jumped 18 percent, according to the South Korean technology giant yesterday.
The company has wrestled control of the majority of the global smartphone market in recent years, offering consumers a range of phones. While Samsung enjoys a larger market share than Apple in users, they have struggled to match the profits margins that Apple has achieved with their iPhone. However, it’s bitter legal battles with the US firm over patent issues led to the company being fined in a California court $1bn last year, while it has both companies have sought to have their rivals new products banned in different territories for numerous other infringements.
In a continuation of the rivalry, Apple is set to ditch Samsung as their primary silicon chip supplier in the coming year, further harming the South Korean firm. Samsungs semiconductor business garnered $8.2bn in revenues in the third quarter of last year, with Apple products making up as much as 81 percent of processors made in 2012 by the company.
