Samsung reports record profits
40% year-on-year increase in mobile device sales in Gulf region
Samsung Electronics has announced a record performance by its telecommunications businesses in the fourth quarter of 2011 registering $15.89 billion in earnings and an operating profit of $2.35bn. Samsung posted revenues of $42.19bn on a consolidated basis for the fourth quarter ended 31st December, 2011, a 13% increase year-on-year.
For the quarter, the company posted consolidated operating profit of $4.72bn, representing a 79% increase year-on-year. Consolidated net profit for the quarter was $3.56bn
The strong performance of the company's telecommunication businesses, including mobile communications and telecommunication systems, has given Samsung full year 2011 operating profits of $7.37bn, up 90% year-on-year. Total sales for fiscal year 2011 also hit an all-time yearly high of $49.53bn, almost one-third of Samsung Electronics' total revenue for the year.
In the Gulf, Samsung recorded a 40% increase year-on-year in mobile communication device sales for the fourth quarter of 2011, following the launch of the Galaxy S II and its portfolio of mid-range feature phones, smartphones and tablets.
"We have had a remarkable year with the launch of our flagship smartphone the Galaxy SII and the launch of our Galaxy tablet range. Regionally, we recorded a solid 30% growth on quarter and 60% growth on year. We were also successful in capturing 21% of the market in the GCC," said Ashraf Fawakherji, general manager of Samsung Gulf Electronics Telecommunication Group. "We concluded the year with the launch of yet another revolutionary device, the Samsung Galaxy Note. For the first quarter of 2012, we expect smartphones and tablets to continue driving market share as the demand for Galaxy S II, Galaxy Note and our range of tablets remain high," he added.
Globally, Samsung's flagship Galaxy S II smartphone and its high-end and entry-level mobile devices helped drive revenue growth by almost 40% compared with the previous year. Shipments of Samsung smartphones rose by approximately 30% in the fourth quarter, compared with the previous quarter while its quarterly earnings were up 52% from the previous year.
In 2012 Samsung expects the demand for entry-level smartphones and tablet PCs to increase significantly, while the growth momentum for feature phones is expected to stay static. The company expects the that emerging markets and the spread of LTE (Long-Term Evolution) wireless telecommunications technology will contribute to the growth of the smartphone market, which is expected to grow by more than 30% in 2012.