Samsung Electronics a leading mobile device provider, recently announced a record performance by its telecommunications businesses in the fourth quarter of 2011 registering USD 15.89 billion in earnings and an operating profit of USD 2.35 billion.
Samsung posted revenues of USD 42.19 billion on a consolidated basis for the fourth quarter ended December 31, 2011, a 13-percent increase year-on-year. For the quarter, the company posted consolidated operating profit of USD 4.72 billion, representing a 79 percent increase year-on-year. Consolidated net profit for the quarter was USD 3.56 billion. In its earnings guidance disclosed on January 6, Samsung estimated fourth quarter consolidated revenues would reach approximately USD 41.92 billion with consolidated operating profit of approximately USD 4.63 billion.
The stellar performance of the company’s telecommunication businesses – including mobile communications and telecommunication systems – has allowed it to register full year 2011 operating profit of USD 7.37 billion, up 90 percent on-year. Total sales for fiscal year 2011 also hit an all-time yearly high of USD 49.53 billion, accounting for almost one-third of Samsung Electronics’ total revenue for the year.
The company has performed exceptionally well in the GCC market as well. In the Gulf, Samsung recorded a 40 percent increase year-on-year in mobile communication devices sales for the fourth quarter of 2011 following the launch of the GALAXY S II and its comprehensive 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 percent growth on quarter and 60 percent growth on year. We were also successful in capturing 21 percent 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 along with its full lineup of high-end and entry-level mobile devices helped drive revenue growth by almost 40 percent compared with the previous year. Shipments of Samsung smartphones rose by approximately 30 percent in the fourth quarter, compared with the previous quarter while its quarterly earnings were up 52 percent from the previous year.
As far as the outlook for 2012 is concerned, 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. Emerging markets and the spread of LTE (Long-Term Evolution) wireless telecommunications technology will also contribute to the growth of the smartphone market, which is expected to grow by more than 30 percent.