Galaxy phones power Samsung to record $8.3 billion profit

SEOUL (Reuters) – Samsung Electronics, the world leader in mobiles and memory chips, said it likely earned a quarterly profit of $ 8.3 billion, as it sold close to 500 handsets a minute and as demand picked up for the flat screens it makes for mobile devices, including those for rival Apple Inc products.

That run of five straight record quarters may end in January-March on weaker seasonal demand, though a strong pipeline of smartphones – the South Korean group’s biggest earner – and improving chip prices have eased concerns that earnings growth could slow this year, powering Samsung shares to record levels last week.

The stock closed down 1.3 percent on Tuesday, in a Seoul market that fell 0.7 percent.

“Investors are a bit concerned that Samsung’s momentum may slow in the first half. The smartphone market is unlikely to sustain its strong growth as advanced markets are nearing saturation despite growth in emerging countries,” said Kim Sung-soo, a fund manager at LS Asset Management.

Samsung has outpaced Apple – its biggest rival and biggest customer – despite the U.S. firm’s launch of the latest iPhone 5, with sales momentum boosted by its Galaxy Note II phone-cum-tablet, or ‘phablet’, in the fourth quarter. IPhone 5 sales were a little below expectations, analysts said.

While Apple rolled out just a single new smartphone last year globally, Samsung bombarded the market with 37 variants tweaked for regional and consumer tastes, from high-end smartphones to cheaper low-end models. By comparison, Taiwan’s HTC Corp released 18 models, Nokia 9 and LG Electronics 24.

HTC on Monday said its fourth-quarter profit slumped more than 90 percent as its sales continue to trail those of the Galaxy range and the iPhone.

Samsung, valued at close to $ 230 billion, gave its October-December earnings guidance on Tuesday, ahead of the full earnings release expected by January 25.

A HIGH NOTE

Shipments of Samsung’s flagship Galaxy S III, which overtook the iPhone 4S in the third quarter to become the world’s best-selling smartphone, are likely to have slipped to around 15 million in the last quarter from 18 million in July-September, analysts estimate, but sales of around 8 million Galaxy Note II ‘phablets’ should more than make up for that – pushing overall smartphone shipments to around 63 million.

“The Note was selling well, boosting fourth-quarter profit, while iPhone 5 sales were less than expected,” said Song Myung-sub, an analyst at HI Investment & Securities.

“Samsung’s profit will drop in the current quarter because of decreased phone profits. It will launch the Galaxy S IV only in March or April so, without new models, phone sales prices will fall this quarter. For the whole year, Samsung will launch new models faster than Apple and have the upper hand in the smartphone market.”

The new Galaxy, widely expected to be released within months, may have an unbreakable screen and full high-definition quality resolution boasting 440 pixels per inch, as well as a better camera and a more powerful processor.

“Samsung’s smartphone shipments are likely to grow even in a seasonally weak first quarter. The early launch of the Galaxy S IV would drive second-quarter growth momentum,” said BNP Paribas Securities analyst Peter Yu, who predicts Samsung’s 2013 operating profit will grow 25 percent to almost $ 35 billion.

Samsung is expected to increase its smartphone sales by more than a third this year, and widen its lead over Apple as it offers a broader range of mobile devices, said Neil Mawston, executive director at market researcher Strategy Analytics, which forecasts Samsung will sell 290 million smartphones this year, up from a projected 215 million in 2012.

Kim Sung-in, an analyst at Kiwoom Securities, sees Samsung shipping 320 million smartphones this year and doubling sales of its tablets to 32 million.

STRONG NUMBERS

Samsung said its October-December operating profit jumped 89 percent to 8.8 trillion won from a year ago, just ahead of a forecast for 8.7 trillion won by 16 analysts surveyed by Reuters. That is 8.6 percent higher than its previous record of 8.1 trillion won in July-September.

Analysts expect profits from the mobile division to more than double from last year and increase slightly from the previous quarter, to around 5.8 trillion won. A recovery in chip prices and flat screens should also boost component earnings, helped by booming sales of mobiles carrying Samsung’s chips, micro-processors and flat screens.

Reflecting the strong outlook, shares in Asia’s most valuable technology stock last week hit a life high of 1.584 million won ($ 1,500). The stock gained 44 percent last year, topping Apple’s 31 percent increase and easily outpacing a 9 percent rise on the broader Korean market.

Samsung, led by founding family member and chairman Lee Kun-hee, is embroiled in a patent legal battle with Apple globally. Apple won a $ 1.05 billion verdict against Samsung in August, but has failed to win a permanent sales ban on several, mostly older Samsung models.

(Additional reporting by Joyce Lee and Narae Kim; Editing by Ian Geoghegan)

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Fifty Shades of Grey Sparks Musical Theater Spoof

By Andrea Billups

01/08/2013 at 07:45 AM EST

Even with last year's runaway success, 2013 is already shaping up to be a 50 Shades of Grey kind of year.

A feature film based on the sexually charged book, which has sold 65 million copies around the world, is in the works for this year. And a musical spoof of the book, 50 Shades! The Musical, will open at New York City's Gramercy Theater on Friday, the New York Post reports.

The stage version is heavy with innuendo but scarce on nudity, unlike the book, which has drawn high praise and vicious criticism as "mommy porn" for its frank description of the bondage tinged relationship between Anastasia Steele, a student, and Christian Grey, her billionaire sexual provocateur.

The musical version is performed by Chicago's Baby Wants Candy musical comedy troupe and is slowly earning critical buzz. The show includes 11 original songs and pokes fun of the characters including the wealthy Grey portrayed with a beer gut.

The film version of the E L James book has been adapted for the big screen by British screenwriter Kelly Marcel, and leaves nothing to the imagination, she tells the Times of London, noting the movie will not be cast until after the script is complete.

Marcel says the script is so closely guarded she is keeping shredders at her Hollywood home to keep away those whom she says are going through her trash to hunt for clues.

"This isn't going to be Twilight. It's going to be raunchy." Marcel said. "We are 100 percent going there."

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Report: Death rates from cancer still inching down

WASHINGTON (AP) — Death rates from cancer are continuing to inch down, researchers reported Monday.

Now the question is how to hold onto those gains, and do even better, even as the population gets older and fatter, both risks for developing cancer.

"There has been clear progress," said Dr. Otis Brawley of the American Cancer Society, which compiled the annual cancer report with government and cancer advocacy groups.

But bad diets, lack of physical activity and obesity together wield "incredible forces against this decline in mortality," Brawley said. He warned that over the next decade, that trio could surpass tobacco as the leading cause of cancer in the U.S.

Overall, deaths from cancer began slowly dropping in the 1990s, and Monday's report shows the trend holding. Among men, cancer death rates dropped by 1.8 percent a year between 2000 and 2009, and by 1.4 percent a year among women. The drops are thanks mostly to gains against some of the leading types — lung, colorectal, breast and prostate cancers — because of treatment advances and better screening.

The news isn't all good. Deaths still are rising for certain cancer types including liver, pancreatic and, among men, melanoma, the most serious kind of skin cancer.

Preventing cancer is better than treating it, but when it comes to new cases of cancer, the picture is more complicated.

Cancer incidence is dropping slightly among men, by just over half a percent a year, said the report published by the Journal of the National Cancer Institute. Prostate, lung and colorectal cancers all saw declines.

But for women, earlier drops have leveled off, the report found. That may be due in part to breast cancer. There were decreases in new breast cancer cases about a decade ago, as many women quit using hormone therapy after menopause. Since then, overall breast cancer incidence has plateaued, and rates have increased among black women.

Another problem area: Oral and anal cancers caused by HPV, the sexually transmitted human papillomavirus, are on the rise among both genders. HPV is better known for causing cervical cancer, and a protective vaccine is available. Government figures show just 32 percent of teen girls have received all three doses, fewer than in Canada, Britain and Australia. The vaccine was recommended for U.S. boys about a year ago.

Among children, overall cancer death rates are dropping by 1.8 percent a year, but incidence is continuing to increase by just over half a percent a year. Brawley said it's not clear why.

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Stock futures flat ahead of earnings season start

NEW YORK (Reuters) - Stock index futures were little changed in low volume on Tuesday ahead of the unofficial start of an earnings season expected to show sluggish corporate growth.

Profits in the fourth quarter were expected to top lackluster results in the previous quarter, but analysts' current estimates are down sharply from where they were in October. Fourth-quarter earnings are expected to grow by 2.8 percent, according to Thomson Reuters data.

S&P 500 futures were up 0.2 point and slightly below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures were unchanged, and Nasdaq 100 futures were also flat.

Shares of Yum Brands Inc fell 5 percent to $64.50 in light premarket trading a day after the KFC parent warned sales in China, its top market, shrank more than expected in the fourth quarter.

ConAgra Foods Inc priced a public offering of 8.1 million common shares at $29.75 per share, the foodmaker said on Monday. ConAgra closed at $30.17 during regular Monday trading.

(Reporting by Rodrigo Campos; Editing by Jeffrey Benkoe)

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Five accused of rape in India appear in court for charges

NEW DELHI (Reuters) - Five men accused of the rape and murder of an Indian student appeared in court on Monday to hear charges against them after two of them offered evidence possibly in return for a lighter sentence in the case that has provoked widespread anger.

The five men, along with a teenager, are accused of raping the 23-year-old physiotherapy student after she boarded their bus on the way home from a movie in New Delhi on December 16. She died two weeks later in a Singapore hospital.

The attack on the student has ignited protests against the government and anger towards the police for their perceived failure to protect women. It has also provoked a rare national debate about rising violence against women.

A police guard said the men had their faces covered when they entered the courtroom, which had been closed to the public minutes earlier.

The five had already been charged with murder, rape and abduction along with other offences and the magistrate gave them copies of the charges, a prosecutor in the case told Reuters.

The court has yet to assign them defense lawyers or legal aid, said public prosecutor Rajiv Mohan. Most lawyers are unwilling to defend them because of the brutality of the crime.

Reuters video images showed the men stepping out of a blue police van that brought them from Tihar jail, and walking through a metal detector into the South Delhi court, across the street from the cinema where the victim watched a film before boarding the bus with a male friend on December 16.

Following shouting and angry scenes in the packed court, the magistrate, Namrita Aggarwal, closed the hearing to the media and the public. The court was cleared and police were posted at its doors before the accused were brought in.

"Keeping in view the sensitivity of this case that has risen, the proceedings including the inquiry and trial are to be held in camera," Aggarwal said, before ordering people not connected with the case out of the courtroom.

Aggarwal said the next hearing would be on January 10. She did not say when the case would go to trial in a separate, fast-track court, set up after the attack on the woman.

Two of the accused, Vinay Sharma and Pawan Gupta, moved an application on Saturday requesting they be made "approvers", or informers, against the other accused, Mukesh Kumar, Ram Singh and Akshay Thakura, prosecutor Mohan said.

Mohan said he was seeking the death sentence given the "heinous" crime.

"The five accused persons deserve not less than the death penalty," he said, echoing public sentiment and calls from the victim's family.

Most members of the bar association in Saket district, where the case is being heard, have vowed not to represent the accused.

GROUNDS FOR APPEAL?

But on Monday, lawyers Manohar Lal Sharma and V. K. Anand stood up to offer representation to the men. They were heckled by other lawyers who said the accused did not deserve representation.

"We are living in a modern society. We all are educated. Every accused, including those in brutal offences like this, has the legal right to represent his or her case to defend themselves," Lal Sharma said.

The court asked Anand to get the approval of the accused to represent them. If the men, most of them from a slum neighborhood, cannot arrange their own lawyers, the court will offer them legal aid before the trial begins.

Police have conducted extensive interrogations and say they have recorded confessions, even though the five have no lawyers.

Legal experts say their lack of representation could give grounds for appeal should they be found guilty. Similar cases have resulted in acquittals years after convictions.

Last week, chief justice Altamas Kabir inaugurated six fast-track courts to help reduce a backlog of sex crime cases in Delhi.

But some legal experts have warned that previous attempts to fast-track justice in India in some cases led to imperfect convictions that were later challenged.

The sixth member of the gang that lured the student and a male friend into the private bus is under 18 and will be tried in a separate juvenile court.

The government is aiming to lower the age teenagers can be tried as an adult, given widespread public anger that the boy will face a maximum three-year sentence.

The victim, who died on December 29 in hospital in Singapore, where she had been taken for treatment, was identified by a British newspaper on the weekend but Reuters has opted not to name her.

Indian law generally prohibits the identification of victims of sex crimes. The law is intended to protect victims' privacy and keep them from the media glare in a country where the social stigma associated with rape can be devastating.

But her father repeated on Monday his wish that she be identified and said he would be happy to release a photograph of her.

"We don't want to hide her identity, there is no reason for that. The only condition is it should not be misused," he told Reuters.

He said he was confident the trial would be quick and reiterated a call that those responsible be hanged.

(Writing by Frank Jack Daniel; Editing by Robert Birsel)

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‘Facebook Dead’: How to ‘Kill’ Your Friends

Rusty Foster discovered he was dead last week, at least according to Facebook. He had been locked out of his account, which had been turned into a “memorial page,” because someone had reported the Maine man as deceased to the social media site.

He tweeted Thursday, “Facebook thinks I’m dead. I’m tempted to just let it,” then “Did you know that you can report any of your Facebook friends dead & Facebook will lock them out of their account with no evidence needed?”

As one of Foster’s friends discovered, it doesn’t take much to convince Facebook that somebody is dead. By simply going to the ” Memorialization Request” page and filling out a form, including a link to an obituary, anybody can take someone else off Facebook.

The obituary needs to have the same name (or at least a close name), but doesn’t need to match any other details on the profile. The obituary Foster’s friend used to prove Foster’s death was for a man who was born in 1924 and died in 2011 in a different state than the one Foster lists on Facebook as his home state.

Foster, 36, said he never got any notification his account was going to be locked, and only discovered it when he attempted to log in. He filled out a form to report the error, and received a response that began with “We are very sorry to hear about your loss.”

More than a full day later, Foster’s account still hadn’t been unlocked. Buzzfeed, tipped off by Foster, posted an article in which one editor “killed” another editor, John Herrman, on Facebook. According to the article, about an hour after Herrman reported the error to Facebook, his profile was reactivated. About an hour after that, 27 hours after Foster first reported his erroneous death, he was “resurrected” by Facebook and allowed back into his account.

Foster does not know the total amount of time he was “Facebook dead.” He told ABC that nothing was different with his account when he logged back in, only that some of his friends had a little fun with his status.

“The only thing that happened was some of my friends posted little mock-eulogies for me, because word got around that I was locked out, due to a temporary case of death,” Foster wrote in an email with the subject line, “Rusty, the Facebook zombie.”

When pages are memorialized, they are removed from sidebars, timelines and friend suggestions and searches. This is likely to prevent people from seeing their friends who have died pop up on their newsfeed, and to prevent people from hacking into the accounts of dead people.

Foster said he understands the position Facebook is in when it comes to the death of one of its users, but believes there are better options for the social media site.

“There ought to be an email sent to the account’s email address informing it that the account has been reported dead and providing a link or something to dispute the report before any action is taken,” Foster wrote.

Foster said the most frustrating part was not being able to get into his account to “click the ‘I’m not dead’ button that should also be there.”

This has apparently been the same “memorialization” process since at least 2009, when another user took to his personal blog to write about his experience of being “Facebook dead.” In his case, the obituary his friend used to have him declared dead wasn’t even close to his real name. Instead, the man who performed the funeral services had a similar name.

In a statement to ABC News, Facebook said the system is in place in order to respect the privacy of the deceased.

“We have designed the memorialization process to be effective for grieving families and friends, while still providing precautions to protect against either erroneous or malicious efforts to memorialize the account of someone who is not deceased,” the statement reads. “We also provide an appeals process for the rare instances in which accounts are mistakenly reported or inadvertently memorialized.”

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Prince Charles Wants a Better Environment for His Grandchild

By Stephen M. Silverman

01/07/2013 at 07:40 AM EST

Prince Charles (foreground), with the Duke and Duchess of Cambridge

Allpix/Splash News Online

With his son and daughter-in-law the Duke and Duchess of Cambridge expecting a baby in early summer, grandfather-to-be Prince Charles says he's determined to be greener than ever – and deliver his future descendant a healthier world, not "a poison chalice."

Long a champion of environment causes, the heir to the throne, 64, told ITV’s This Morning show on Monday: "I've gone on for years about the importance of thinking about the long term in relation to environmental damage, climate change and everything else. We don't, in a sensible world, want to hand on an increasingly dysfunctional world to our grandchildren, to leave them with the real problem."

Saying "I don’t want to be confronted by my future grandchild and have them say, 'Why didn’t you do something?' " Charles went on to state, "So clearly now that we will have a grandchild, it makes it even more obvious to try and make sure we leave them something that isn't a total poisoned chalice."

Charles – recently named among the U.K.'s best-dressed gents – also spoke of his concern for son Prince Harry, 27, currently serving in Afghanistan.

"If you are a parent or relation to a loved one and that person is away in incredibly dangerous and challenging circumstances, I know you worry all the time," he said. "Certainly every night I worry. But he loves what he is doing and he's brilliant at it."

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Your medical chart could include exercise minutes

CHICAGO (AP) — Roll up a sleeve for the blood pressure cuff. Stick out a wrist for the pulse-taking. Lift your tongue for the thermometer. Report how many minutes you are active or getting exercise.

Wait, what?

If the last item isn't part of the usual drill at your doctor's office, a movement is afoot to change that. One recent national survey indicated only a third of Americans said their doctors asked about or prescribed physical activity.

Kaiser Permanente, one of the nation's largest nonprofit health insurance plans, made a big push a few years ago to get its southern California doctors to ask patients about exercise. Since then, Kaiser has expanded the program across California and to several other states. Now almost 9 million patients are asked at every visit, and some other medical systems are doing it, too.

Here's how it works: During any routine check of vital signs, a nurse or medical assistant asks how many days a week the patient exercises and for how long. The number of minutes per week is posted along with other vitals at the top the medical chart. So it's among the first things the doctor sees.

"All we ask our physicians to do is to make a comment on it, like, 'Hey, good job,' or 'I noticed today that your blood pressure is too high and you're not doing any exercise. There's a connection there. We really need to start you walking 30 minutes a day,'" said Dr. Robert Sallis, a Kaiser family doctor. He hatched the vital sign idea as part of a larger initiative by doctors groups.

He said Kaiser doctors generally prescribe exercise first, instead of medication, and for many patients who follow through that's often all it takes.

It's a challenge to make progress. A study looking at the first year of Kaiser's effort showed more than a third of patients said they never exercise.

Sallis said some patients may not be aware that research shows physical inactivity is riskier than high blood pressure, obesity and other health risks people know they should avoid. As recently as November a government-led study concluded that people who routinely exercise live longer than others, even if they're overweight.

Zendi Solano, who works for Kaiser as a research assistant in Pasadena, Calif., says she always knew exercise was a good thing. But until about a year ago, when her Kaiser doctor started routinely measuring it, she "really didn't take it seriously."

She was obese, and in a family of diabetics, had elevated blood sugar. She sometimes did push-ups and other strength training but not anything very sustained or strenuous.

Solano, 34, decided to take up running and after a couple of months she was doing three miles. Then she began training for a half marathon — and ran that 13-mile race in May in less than three hours. She formed a running club with co-workers and now runs several miles a week. She also started eating smaller portions and buying more fruits and vegetables.

She is still overweight but has lost 30 pounds and her blood sugar is normal.

Her doctor praised the improvement at her last physical in June and Solano says the routine exercise checks are "a great reminder."

Kaiser began the program about three years ago after 2008 government guidelines recommended at least 2 1/2 hours of moderately vigorous exercise each week. That includes brisk walking, cycling, lawn-mowing — anything that gets you breathing a little harder than normal for at least 10 minutes at a time.

A recently published study of nearly 2 million people in Kaiser's southern California network found that less than a third met physical activity guidelines during the program's first year ending in March 2011. That's worse than results from national studies. But promoters of the vital signs effort think Kaiser's numbers are more realistic because people are more likely to tell their own doctors the truth.

Dr. Elizabeth Joy of Salt Lake City has created a nearly identical program and she expects 300 physicians in her Intermountain Healthcare network to be involved early this year.

"There are some real opportunities there to kind of shift patients' expectations about the value of physical activity on health," Joy said.

NorthShore University HealthSystem in Chicago's northern suburbs plans to start an exercise vital sign program this month, eventually involving about 200 primary care doctors.

Dr. Carrie Jaworski, a NorthShore family and sports medicine specialist, already asks patients about exercise. She said some of her diabetic patients have been able to cut back on their medicines after getting active.

Dr. William Dietz, an obesity expert who retired last year from the Centers for Disease Control and Prevention, said measuring a patient's exercise regardless of method is essential, but that "naming it as a vital sign kind of elevates it."

Figuring out how to get people to be more active is the important next step, he said, and could have a big effect in reducing medical costs.

___

Online:

Exercise: http://1.usa.gov/b6AkMa

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

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Stock futures slip after stocks hit five-year high

NEW YORK (Reuters) - Stock index futures fell on Monday, with markets expected to consolidate after the S&P 500 index closed at a five-year high on Friday.

Last week was the best for U.S. stocks in more than a year as a budget deal and economic data boosted investor confidence.

Financial shares will be in focus a day after global regulators gave banks four more years and greater flexibility to build up cash buffers, scaling back moves that aimed to help prevent another financial crisis.

By spurring credit, the easing of the bank rule may help support growth, boosting investments in equities and other risk assets.

S&P 500 futures dipped 1.3 points and were below fair value, a formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract. Dow Jones industrial average futures fell 13 points, and Nasdaq 100 futures added 1 point.

Walt Disney Co started an internal cost cutting review several weeks ago that may include layoffs at its studio and other units, three people with knowledge of the effort told Reuters.

Video-streaming service Netflix Inc said it will carry previous seasons of some popular shows produced by Time Warner's Warner Bros Television.

Major U.S. technology companies could miss estimates for fourth-quarter earnings as budget worries likely led some corporate clients to tighten their belts last month.

Amazon shares rose 2.3 percent in premarket trading after Morgan Stanley raised is rating on the stock to "overweight" from "equal weight."

(Reporting by Rodrigo Campos; Editing by Kenneth Barry)

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Defiant Assad summons Syrians for "war to defend nation"

BEIRUT (Reuters) - A defiant President Bashar al-Assad called on Sunday for national mobilization in a "war to defend the nation", describing rebels fighting him as terrorists and agents of foreign powers with whom it was impossible to negotiate.

Appearing in an opera house in central Damascus packed with cheering supporters, the Syrian leader delivered his first speech to an audience since June last year, and his first public comments since a television interview in November.

He unveiled what he described as a peace initiative to end the 21-month-old uprising. But the proposal, including a reconciliation conference that would exclude "those who have betrayed Syria", was certain to be rejected by enemies who have already said they will not negotiate unless he leaves power.

He spoke confidently for about an hour before a crowd of cheering loyalists, who occasionally interrupted him to shout and applaud, at one point raising their fists and chanting: "With blood and soul we sacrifice for you, O Bashar!"

At the end of the speech, supporters rushed to the stage, mobbing him and shouting: "God, Syria and Bashar is enough!" as a smiling Assad waved and was escorted from the hall.

"We are now in a state of war in every sense of the word," Assad said in the speech. "This war targets Syria using a handful of Syrians and many foreigners. Thus, this is a war to defend the nation."

"We meet today and suffering is overwhelming Syrian land. There is no place for joy while security and stability are absent on the streets of our country," Assad said. "The nation is for all and we all must protect it."

The United Nations says 60,000 people have been killed in the civil war in Syria, which has brought fighting to the edge of the capital.

(Reporting by Erika Solomon; writing by Peter Graff; editing by Philippa Fletcher)

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