News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
GET RECOGNIZED.
Let an ISACA® certification
elevate your career.

Register today and save
You are here: Home / Mobile Tech / Mobile Boosts Samsung Record Profits
DDoS Protection Powered By Verisign
Samsung Sees Record Q4 Profits, Boosted by Mobile
Samsung Sees Record Q4 Profits, Boosted by Mobile
By Adam Dickter / NewsFactor Network Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
PUBLISHED:
JANUARY
25
2013

For Samsung Electronics, success seems to come in all shapes and sizes, as the company's multi-structured approach to consumer taste yields big profits. In its fourth-quarter consolidated earnings report released Friday, the South Korean technology giant showed a 75.6 increase in profit over the same period of last year, boosted heavily by smartphone sales, with a record 7.04 trillion won net profit ($6.6 billion at current exchange rates). That represents almost a third of 2012's total profit.

Galaxy of Profit

Smartphone revenues amounted to about $5 billion, more than double last year's fourth quarter, with the flagship smartphone Galaxy S III and Galaxy Note II "phablet" leading the charge.

"Despite uncertainties in Europe and concerns over the U.S. 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, Samsung senior vice president and head of investor relations.

He cautioned that in 2013, the company's component business should see a slow recovery due to reduced spending on manufacturing. Warnings that a stronger won may cut operating profit led to a drop in Seoul trading to a two-month low, Bloomberg news said.

Samsung said its lineup of LED TVs contributed to profits but gave no figure in its statement. Appliance sales, on the other hand, slumped because of the weak global economy, with the exception being high-end refrigerators and washers in the U.S. and Europe.

The earnings presented a brighter picture than that of archrival Apple, which also showed record profits but showed smartphone sales that were lower than Wall Street's high expectations, fueling speculation that its market share is starting to slip amid stiffer competition from devices with a bigger variety of features. Apple slightly increased its display with the iPhone 5 from 3.5 inches to 4 inches, at a time when some Android-based phones by Samsung and others are routinely larger.

Non-Frivolous Differentiation

"What we're seeing is a common issue in products without a lot of room to evolve," Charles King, principal analyst at Pund-IT, told us. "When you've gone about as far as you can -- given the limitations of available technology -- you focus instead on form factor issues. It isn't quite as frivolous as the increasingly large fins that graced Cadillacs and other U.S. cars in the '50s and '60s. Bigger screens -- especially in smart phones -- measurably impact customer experience, especially for multimedia apps and gaming."

Reports emerged last week that Apple may shift its strategy to a range of screen-size devices, with an "iPhone Math" in the works with a 4.8-inch screen. This kind of "me-tooism," as also seen with Apple's capitulation in making an iPad mini, "may also reflect essential changes in customer taste," King said.

Research firm Strategy Analytics said in a report issued Friday that Samsung shipped 213 million smartphones worldwide in 2012, the largest number ever shipped by a vendor in a single year. Apple held second place, with 135.8 million, while Nokia retained third place with 35 million. All others combined amounted to 316 million.

Tell Us What You Think
Comment:

Name:

Like Us on FacebookFollow Us on Twitter
TOP STORIES NOW
MAY BE OF INTEREST
Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.
MORE IN MOBILE TECH
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Are Government Spies Tipping Off Tor?
Less than a month ago, tech news headlines heralded a Tor Project breach. Now, some are saying that government spies are sharing information with Tor to help it prevent future breaches.
 
Backoff Malware Hits 1,000+ Businesses, Likely More
More than 1,000 businesses across the U.S. might have been affected by Backoff, a new kind of point-of-sale (PoS) malware, according to the Department of Homeland Security.
 
PlayStation Network Back Online After Attack
Sony’s PlayStation and Entertainment Network are back online after a distributed denial of service (DDoS) attack crashed the systems on Sunday. But Sony says no personal info was accessed.
 

Enterprise Hardware Spotlight
Alert: HP Recalls 5 Million Notebook AC Power Cords
HP is recalling about 5.6 million notebook computer AC power cords in the U.S. and another 446,700 in Canada because of possible overheating, which can pose a fire and burn hazard.
 
Acer's New Desktop Box Rides the Chrome OS Wave
Filling out its Chrome OS line, Acer is following the introduction of a larger Chromebook line earlier this month with a new tiny $180 desktop Chromebox and also a smaller Chromebook.
 
Feds OK $2.3 Billion IBM-Lenovo x86 Server Deal
IBM and Lenovo are celebrating U.S. approval of their x86-based server deal, having cleared some major security hurdles. The deal makes Lenovo a major player for enterprise data centers.
 

Mobile Technology Spotlight
Verizon Hops on the Voice-Over-LTE Bandwagon
Wireless provider Verizon is gearing up for a nationwide launch of its Voice-over-LTE service over the next several weeks, promising clearer and crisper phone calls and a Skype-like video service.
 
Smartphone 'Kill Switch' Law in California; Will Other States Follow?
California’s new law -- signed by Gov. Jerry Brown on Monday -- aimed at deterring cellphone theft could mean most mobile phones sold in the U.S. will soon include similar “kill-switch” tech.
 
Apple To Replace 'Small Percentage' of iPhone 5 Batteries
If you've noticed your iPhone 5 isn't acting right, it might be because of a bad battery -- and you might be eligible for a replacement. Apple is offering new batteries, though only for a small percentage of users.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.