16/Apr/2014 - Last News Update: 08:58

Samsung in year end profit boost on smartphone sales

Category: Business

Published: 27th Jan 2012 02:24:14

South Korea's Samsung Electronics has announced a 17% rise in profits in the last three months of 2011, as smartphone sales boosted earnings.

Net profit for the quarter was 4 trillion won ($3.6bn; £2.3bn), up from 3.42tn won in the same period the previous year, Samsung said.

However, for the whole of 2011 net income was down 15% compared with 2010.

Samsung's parent group is planning $42bn (£26.8bn) in capital investment this year.

Samsung said that its Galaxy line of mobile devices drove up revenue for the year by almost 40% compared with the previous year.

Despite tough competition from the likes of Apple in the smartphone market, Samsung said that shipments of it smartphones rose by about 30% in the fourth quarter on an annual basis.

"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.

James Rooney, Market Force: "Samsung is a very strong and diversified player"

Looking ahead to this year, Samsung is forecasting increased demand for entry-level smartphones and tablet PCs, as well as consistent demand for feature phones.

The company said it will spend 25tn won in capital expenditure this year on its chip and panel businesses, according to the statement.

However, that panel display business, which makes flat panels for TVs and computer monitors, did not perform as well in 2011.

Samsung said it had an operating loss of 220bn won, compared with an operating profit of 100bn won a year earlier.

Despite that Samsung announced its latest line of TVs, which are controlled by voice commands and hand gestures, at the Consumer Electronics Show in Las Vegas last month.

Source:
BBC News External Link Show Citation

Latest News

Harvard Citation

BBC News, 2012. Samsung in year end profit boost on smartphone sales [Online] (Updated 27th Jan 2012)
Available at: http://www.ukwirednews.com/news/221163/Samsung-in-year-end-profit-boost-on-smartphone-sales [Accessed 16th Apr 2014]

News In Other Categories

  • Steroid 'abuse' of Wedinos drug testing service denied

    Claims that steroid dealers are exploiting a publicly-funded drug testing service have been denied.
  • Amir Khan signs up with Floyd Mayweather advisor Al Haymon

    Amir Khan appears to have improved his chances of landing a lucrative showdown with Floyd Mayweather by teaming up with the boxing adviser Al Haymon.
  • Credit Suisse rebuffs foreign exchange probe

    Swiss bank Credit Suisse has found nothing "materially untoward" in how it trades foreign currencies, finance officer David Mathers has said.
  • Under 16s 'refused access to mental health safe havens'

    Children suffering a mental health crisis are being forced into police custody because 35% of NHS "places of safety" ban under 16s, research shows.
  • Study examines couple's closeness at Edinburgh International Science Festival

    Closeness between couples is reflected in the distance separating them as they sleep, a study has found.
  • Bristol Academy extends reach overseas with first foreign students

    With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com