A record $4.7 billion quarterly operating profit was posted by Samsung Electronics Co that was driven booming smartphone sales. The company will be spending $22 billion this year to boost production of chips and flat screens to pull further ahead of smaller rivals.

The world’s top technology firm by revenue, Samsung, is locked in breakneck competition with Apple Inc in the red-hot smartphone market.

Research firm Strategy Analytics put Samsung sales at 36.5 million smartphones in October-December, with 3rd-ranked Nokia on 19.6 million.

“The battle of the two big smartphone powers, Apple versus Samsung, will go on,” said Baik Jae-yer, fund manager at Korea Investment Management. “The smartphone market will expand this year to more mid-and low-end models that are affordable to the wider public,” Baik said. “Rather than focus on market share, I’d point out the strong contribution of Samsung’s handset business to earnings growth and margins.”