Samsung sets record profit growth in Q4 2010
Mobile phone business brought in $1.29bn operating profit globally
Samsung Electronics has reported a record global quarterly operating profit of $1.29bn for the mobile phone section of its business in Q4 2010. This figure is a 38% increase in profit year-on-year.
Samsung Mobile also registered Q4 2010 revenue at $10.86bn, compared with $9.12bn for same period of 2009.
Samsung Mobile finished the year strongly with an operating profit of $3.86bn on sales of $36.9bn for its telecommunications businesses.
The company landed global revenue of $37.56bn on a consolidated basis for the fourth quarter ended 31st December, 2010, a 7% increase year-on-year.
For the quarter, the company posted consolidated net income of $3.06bn, a 13% increase year-on-year. Consolidated operating profit for the quarter was $2.7bn. In its earnings guidance disclosed on 7th January, Samsung estimated fourth-quarter consolidated revenues would reach approximately $36.7bn with an operating profit of $2.6bn.
In the Middle East region, Samsung Gulf reported an average market share of 20% in UAE, Kuwait, Qatar, Bahrain and Oman. Sales of the Galaxy S and Wave smartphones drove sales growth in the Middle East region and boosted the mobile phone divisions Q4 2010 turn-over growth by 60%.
Samsung Gulf says it will be focusing on continuing to launch mobile phones on different operating platforms that have the latest technologies and designs. Samsung's Mobile business is anticipating further positive growth in 2011 as more people begin to use smartphones.
"We accomplished our fourth quarter goals in the Middle East due to the rising demand of smartphones in emerging markets. Due to our diverse product mix of mass-market smartphones and touch-screen feature phones, we were able to register a solid sales growth for 2010," said Young Woo Jun, Mobile Phone sales and marketing director of Samsung Gulf Electronics.
"For 2010, we had launched our comprehensive portfolio of smartphones such as the Galaxy S, Galaxy Tab, Wave and its series to meet the increasing demand of smartphones and replacement demand for full-touch screen phones. We can expect a strong market growth for the mobile division as we plan on more than double the smartphone shipments in 2011."
Samsung's global performance in the fourth quarter is still being driven by its memory semiconductor business and strong sales of smartphones.
The fourth quarter results brought Samsung's full year 2010 revenue to an all-time high of $138.7bn, up 13% from last year.
Net income reached a record high of $14.49bn, up 65% compared with the previous year, while operating profit was $15.52bn, also a record.
Samsung's Galaxy S smartphone achieved worldwide sales of 10 million units and the Android-powered Galaxy Tab attracted strong year-end demand.
Globally, Samsung sold 80.7 million mobile phones for the quarter, up 17% year-on-year. This brought total sales for the year to 280 million units, registering growth of 23%, outperforming the overall market. Samsung has revealed that it will introduce the next generation Galaxy S smartphone during the first half of 2011. The new device will feature a dual-core processor and Super AMOLED Plus display.