Samsung’s Q4 profit rides high on Galaxy smartphonesJanuary 27th, 2012 by Sling Broadband
Samsung Electronics reigned supreme among Android vendors in the fourth quarter, as its successful smartphone business helped drive an uptick in the company’s fourth-quarter profit.
The Korean consumer electronics giant today reported a profit of 4 trillion Korean won, or $3.56 billion, up 8.5 percent from a year-earlier profit of 3.42 trillion Korean won.
The company’s revenue advanced more than 13 percent to 47.3 trillion Korean won ($42.15 billion).
Propelling Samsung’s profit and revenue was its mobile devices business, which saw tremendous success with the Galaxy line of Android smartphones. The Galaxy S II continues to be a hit around the world, including strong demand at U.S. carriers such as T-Mobile USA and AT&T. It also recently launched the Galaxy Nexus, the first smartphone running on Android 4.0, also known as Ice Cream Sandwich.
The telecom unit saw a 52 percent increase in sales and 79 percent jump in profit.
It’s been a handy guide a rough ascent in the cellular trade for Samsung, which was slower than different vendors in transferring to smartphone, however has made up for it with a rapid improve in its designs and contours. in the third quarter, Samsung overtook Apple in cellphone shipments, however Apple has because taken again the crown in the fourth quarter, way to the debut of the iPhone 4S.
Apple narrowly edged Samsung for the lead in the fourth quarter, according to Strategy Analytics.
Samsung’s success is a stark contrast from the other Android players. Motorola Mobility, for instance, yesterday reported a loss in the fourth quarter amid continued competitive pressure, while HTC has struggled in recent months.
While Samsung warned of a seasonal slowdown within the first quarter, the company expects the smartphone trade to grow through more than 30 % this year, offsetting its older function phone business, which faces increasing pricing power. as well as, Samsung expects the pill marketplace to enlarge, pushed via more reasonably priced mass-marketplace fashions. thus far, the corporate’s Galaxy Tab line of tablets have been bought competitively with Apple’s iPad, unlike other extra budget-friendly products like the Amazon Kindle hearth.
The company’s main focus remains smartphones with it targeting multiple operating systems and all segments and markets, said Oppenheimer analyst Ittai Kidron. Feature-phone development is primarily for emerging market opportunities.
Samsung’s display, television, and digital appliances businesses also saw revenue growth, as television sales were helped by its newer smart LED units. Despite a slight revenue decline, Samsung’s chip business also saw a jump in profitability for the period.
Overall television sales will probably be driven by way of call for from the emerging markets, in addition to more recent LED television units, together with ones presented at the consumer Electronics display that allow for voice and gesture controls.