Mobile device sales pump Samsung’s net profit up to US$6.58bn

25 Jan 2013 2 Shares

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The Samsung Galaxy SIII smartphone

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Solid sales of the Galaxy SIII smartphone and the Galaxy Note II ‘phablet’ drove a fourth-quarter net profit of 7.04trn won (US$6.58bn) on sales of 56trn won (US$52.6bn), up 19pc on a year earlier for smartphone maker Samsung Electronics.

The South Korean company sold an estimated 63m smartphones in the three-month period ending 31 December 2012, causing profits to soar 76pc from the previous year.

Operating profit in the company’s mobile phone division totalled 5.44trn won (US$5.06bn), up from 2.56trn won (US$2.38bn) a year earlier.

Consolidated operating profit for the quarter hit 8.84trn won (US$8.3bn), representing a 10pc increase from the previous quarter.

Samsung’s full-year operating profit for 2012 reached 29.05trn won (US$27.2bn) on revenue of 201.10trn won (US$188.1bn).

“Despite uncertainties in Europe and concerns over the US fiscal cliff creating a difficult business environment, 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,” said Robert Yi, senior vice-president and head of Investor Relations.

“Heading into this year, we are expecting a slow recovery in the component business due to reduced capital expenditures, while competition in the set business will intensify further as demand slows and the mid- to low-end market expands,” he added.

Yi also expressed caution over the continued strength of the Korean won in 2013.

Tina held senior editorial positions at daily newspapers in Ottawa and Toronto

editorial@siliconrepublic.com

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