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Samsung Profits Jump By 17%

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Samsung had a good festive period, with smartphone sales helping the bottom line significantly, but taken as a whole 2011 saw net income slip 15 per cent compared to 2010.

As it had previously indicated to the market, Samsung has reported a record quarter for the final three months of 2011. In total it manages sales of 47.3 trillion won (£26.8 billion) and posted profits of 5.3 trillion won (£3bn) - a 17 per cent rise year-on-year.

2011 as a whole saw the company record £93bn in sales with £9.2bn in profit. This however was down 15 per cent compared to the profit posted for 2010. Profit from smartphones sales however, boosted by the success of the Galaxy S II, jumped from £1.9bn in Q4 2010 to £2.3bn in the quarter just gone.

Samsung

Samsung is one of the most diversified technology companies in the world with fingers in many tech pies including semiconductors, TVs, laptops and smartphones.  It was its mobile business which was one of the standout businesses in 2011 with sales growing 54 per cent and profit up 79 per cent in the year as a whole.

"Our telecommunications business continued to post solid earnings with an enhanced line-up of high-end smartphones, resulting in [a] higher average selling price," said Robert Yi, senior vice president and head of investor relations, in the earnings statement.

Samsung

Samsung also announced that it would be making a £42bn capital investment in 2012 in its chip and panel businesses, this despite the panel business not performing well in 2011 as a result of continued poor PC demand.

Looking forward, Samsung is expecting growth in demand for entry-level smartphones and tablets as well as continued high demand for feature phones.

Source: Samsung (pdf)

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