Samsung earns $7.3 billion in 3rd quarter beating estimates

Posted Oct 4, 2012 by Ken Hanly
Samsung Electronics estimated its July through September operating profit at $7.3 billion. The South Korean firm is the world's largest technology firm by revenue. Surging sales of its Galaxy smartphones.has increased profits.
Samsung tempts buyers with its Internet-connected TV and its services
Samsung tempts buyers with its Internet-connected TV and its services
Samsung has an estimated value of about $197 billion. Even though a California court ordered Samsung to pay $1 billion in damages to Apple for patent infringement on August 24, Samsung shares have risen 7.2% since then. During the same period, Apple shares have risen only 1%. Samsung remains the world's biggest maker of both televisions and mobile phones.
The $7.3 billion earned during the third quarter is nearly double earnings for the 3rd quarter last year. As the profits beat expectations, Samsung shares rose 1.5%. However, legal issues with Apple, still are a problem for Samsung.
Analyst Lee Sun-Tae said:
"Stronger than expected sales of Galaxy S3 and high-end television models appear to have propelled strong earnings growth in the third quarter." However, the California court decision continues to cloud Samsung's future. James Song of KDB Daewoo Securities said:"Fourth-quarter earnings will depend on how much Samsung will (set aside) provisions for possible fines relating to a lawsuit with Apple," Samsung has called for a retrial. Among Samsung's complaint is that the jury foreman had provided incomplete answers during jury selection.
Velvin Hogan, the jury foreman, had failed to reveal two lawsuits he had been involved in according to Samsung. Samsung noted that Mr. Hogan had been sued by his former employer, the hard disk maker Seagate, for breach of contract. Samsung's filing notes that it is the biggest shareholder in Seagate. Samsung lawyers said:"Mr Hogan's failure to disclose the Seagate suit raises issues of bias that Samsung should have been allowed to explore in questioning." The Samsung filing also claimed that Hogan had given advice to the jury that was incorrect.
In an interview after the decision, Hogan had said he wanted "to send a message to the industry at large that patent infringing is not the right thing to do" and "make sure the message we sent was not just a slap on the wrist". When asked during jury selection if he had strong feelings on intellectual property laws Hogan had remained silent. Samsung had numerous other complaints about the trial including about the behavior of the judge