Samsung Profits Soar 76% with Strong Galaxy Sales
Crediting strong sales of its Galaxy S3 smartphone and Galaxy Note 2 phablet, Korea's Samsung Electronics Co., Ltd., now the world's preferred mobile phone maker, has reported profits during the fourth quarter of 2012 has jumped tremendously to a record high 76 per cent versus a year ago.
Despite uncertainties in Europe and concerns over the U.S. fiscal cliff creating a difficult business environment, Samsung's overall net income from October-December of 2012 hit 7.04 trillion won (AU$6.29 billion, $6.58 billion), versus 4.01 trillion won a year earlier. Analysts' projections for the said quarter was 6.95 trillion won.
"We did our best this quarter to achieve strong earnings based on a strategic focus on differentiated and high value-added products as well as our technological competitiveness," Robert Yi, Senior Vice President and Head of Investor Relations, said in a statement.
From October-December of 2012, mainly driven by the solid sales of its GALAXY S IIl and GALAXY Note ll, Samsung's revenues from mobile Communications grew 4 per cent over the third quarter, reaching 27.23 trillion won. Operating profit for IT & Mobile Communications, which encompasses four business units including Mobile Communications, was 5.44 trillion won on revenues of 31.32 trillion won.
Growth developments were likewise posted in the Korean mobile maker's overall sales and operating income. Sales jumped 19 percent to 56.06 trillion won versus a year ago, while Samsung's operating income surged 89 percent to 8.84 trillion won.
Analysts expect Samsung to enjoy a sustained rise in smartphone sales this year.
Market research firm IHS iSuppli, which noted last year that Samsung had overtaken Nokia as the world's preferred mobile phone maker in 2012, said the Korean company's success was built on its "fast follower" strategy for design and manufacturing, as it strives to produce dozens of new smartphone models every year that cater to all segments of the market, from the high-end to the low-end.