Samsung profits soar by 76% as rival Apple suffers headache
Galaxy smartphones power Samsung growth – but company still puts a ceiling on capital spending
THERE were mixed fortunes for two of the biggest technology companies in the world yesterday as profits fell at Microsoft but soared at South Korea's Samsung.
Meanwhile, Apple shares had their worst 24 hours in more than four years, falling to $450.50 (they were $702 in September) as the market continued to digest results which, despite record revenues, analysts found disappointing.
The BBC reports that Microsoft's profits in the final quarter of 2013 were down four per cent to $6.4 billion despite shifting more than 60 million copies of Windows 8 - the latest iteration of the operating system installed in 90 per cent of the world's PCs.
Samsung saw its profits rise by 76 per cent to $6.6 billion in the last three months of 2012 with sales of its Galaxy range of smartphones powering growth.
However, the company - which also has huge businesses making LCD displays and computer memory chips - said it planned to limit the amount of cash it spent on expanding the business in the coming year, the first time it has put a ceiling on capital spending since the financial crisis began.
At Microsoft, the Windows division increased sales by 24 per cent to $5.88 billion but sales of software such as Office were down 10 per cent to $5.7 billion. Sales at the entertainment division which makes Xbox games consoles were also lower.
Microsoft's shares fell by 1.7 per cent to $27.16 overnight in New York, The Times reported. ·