Samsung expect 79% profit surge

World's biggest mobile phone maker's profits boosted by strong smartphone sales
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The company has said it expects its profits to soar following the continued growth of its smartphones sales, forecasting an operating profit of 6.7tn (£3.8bn).

It comes after Samsung overtook Nokia as the world's biggest maker of mobile phones earlier this year.

Samsung launched the Galaxy S III in May this year and the device has received a hugely positive reception, with Shin Jong-kyun - the company's head of mobile phone division, predicting the device will sell ten million units by the end of July.

Analysts have predicted that the company's profits will rise even further in the coming months.

Mho Geun-Chang - an analyst with HMC Investment Securities, told the BBC: "Earnings will be stronger in the current quarter as sales of the high-end Galaxy III will increase dramatically and drive the telecom division's earnings to above 5tn won,"

However, sales of the device are expected to slow considerably towards the end of the year as Apple are widely expected to launch their latest version of the iPhone.

Fierce competition from Apple is not the only issue for Samsung, as the companies remain locked in a series of legal disputes over patent infringements. Sales of Samsung's Galaxy Nexus smartphone and Galaxy Tab 10.1 tablet PC remain prohibited in the US until the patent case between the firms reaches its conclusion.

PCR reported earlier this week on Samsung's decision to appeal the ban on its Galaxy Tab 10.1 tablet, hoping to have the device back on shelves until the legal case reached a conclusion, however, the appeal was subsequently denied.

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