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Samsung keeps its eyes on releasing more phones in developing world following big Q4 profits

News by Andrew Kameka on Friday January 25, 2013.

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Think Samsung might follow the "less is more" approach favored by Apple and HTC? Think again. Samsung reported a nearly $8.23 billion operating profit in the fourth quarter of 2012 thanks in part to the success of its Galaxy S III and Galaxy Note II, but the Korean manufacturer sees more phone models as the answer to more profits.

While rivals have released a handful of smartphones tailored to different regions, Samsung released so many phones in 2012 that it seemed like the carrier announced one every other week. That trend will continue because Samsung does not want to rely on its high-end flagship devices to continue delivering record sales.

The Galaxy S III and Galaxy Note II doubled the sales of their predecessor, and Samsung credits those phones as the biggest contributor to the IT & Mobile Communications division, which also includes Samsung's equipment unit, reporting more than $5.06 billion in profit. Though the high-end helped the company finish strong in 2012, Samsung believes 2013 will require it to ramp-up its efforts in the low-end and midrange markets. Just as Nokia warned of a looming slowdown because of heightened competition, Samsung cites "heated pricing" in the fourth quarter as stunting its growth. Looking forward in its release statement, the company said:

"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.

In the first quarter, demand for smartphones in developed countries is expected to decelerate, while their emerging counterparts will see their markets escalate with the introduction of more affordable smartphones and a bigger appetite for tablet PCs throughout the year."

Samsung's statements confirm that users can expect to see more midrange phones that have "Galaxy" in their name but don't' quite meet the expectations of high-end consumers. Samsung will obviously release the Galaxy S IV and Galaxy Note III, but the company will also release a slew of phones with fewer features and hardware capabilities as a way of being more competitive in emerging markets in Europe, Asia, and Latin America.

source: Samsung

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Andrew Kameka
Andrew is based in Miami, Florida.

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