Samsung surprised with strong profit increase
The electronics giant Samsung cemented its position as market leader in smartphones with unexpectedly good financial results. On Friday, the Korean company said its outlook for the fourth quarter, exceeding analysts' expectations in terms of profit, and with regard to sales revenue. The leading driver of profit growth in the amount of 73% over the previous year were a record high sales of mobile phones, as concern has sold 35 million devices. So in this segment significantly ahead of Samsung American rival Apple and remains the largest technology concern in the world with regard to income. Between October and December Samsung expects operating profit of 5.2 billion won (about 3.5 billion), while analysts polled by Reuters had expected 4.7 billion won. This may be the highest profit in the history of the concern. Revenues are expected to be around 31 billion euros and thus also significantly surpassed expectations. In late January, Samsung will present its detailed financial data. The experts had expected really strong performance. In fact, Samsung is struggling with weak market for memory chips, where the company is also a world leader. But customers were convinced of smartphones Koreans. Here, competitors such as HTC, Nokia and Research in Motion has not fared with their latest devices.
The profit of Samsung with 30% decrease for the first quarter
The South Korean technology company Samsung reported a decline in profits from 30% in the first quarter a year earlier. The reasons for this state falls in the prices of memory cards and reduced the price in the manufacture of liquid crystal displays and televisions. The profit for the first three months was 2.78 trillion. won (2.59 billion dollars). Over the same period last year, the positive result was 3.99 trillion KRW. The sales of Samsung, however, increased by 6.8 per cent yoy to 36.99 trillion KRW. The South Korean company is the largest manufacturer of flat screen TVs, memory cards and LCD. Samsung holds second place for the manufacture of mobile phones after the Finnish company Nokia. In 2010, Samsung achieved record sales, the operating profit and net profit. For this year, the estimates are conservative because of increasing price competition in consumer electronics. The sales of mobile phones has dropped by 14 percent to 70 million units in the first quarter. Unit production of phones, however, reported improved profitability due to growing demand for smartphones and devices from a higher class as a whole. During the quarter share of smartphones in the total sales of phones reached 18 percent after the same period of last year was only 4 per cent.
Samsung again with high profit for the quarter
The South Korean electronics maker Samsung again achieved record financial results, after announcing a net profit of 4.46 trillion. South Korean won (3.98 billion U.S. dollars) in the third quarter. Thus the company improved its previous record, which was placed in the second quarter of this year when it was reported a net profit of 4.30 trillions KRW. For the period from July to September 2009 its positive financial result amounted to 3.81 trillions KRW. the profit increased by 17% annually because of the increased revenue from the sale of chips and mobile phones, which offset the decline in sales of televisions. Only within the first nine months of this year Samsung has made more profit - 12.73 trillion. KRW than any year in its history. The company management, however, is pessimistic about the results in the current quarter as a result of pressure on the TVs and an oversupply of computer chips. It weighed over the share price of Samsung's Seoul Stock Exchange and they are cheaper by more than 2%. The Samsung's expectations for a decrease in prices due to oversupply the market for computer chips and reduced demand for LCD TVs. Appreciation of Korean won in recent months is also expected to hurt financial results for the fourth quarter. The sales of the company rose to 40.23 trillion. South Korean won to 35.89 trillion. won for the third quarter of last year. Samsung's financial results were in line with the forecasts of the management, made earlier this month. The highest progress in the third quarter has compartment for mobile phones, where the share of operating profit on sales increased to 10.2% compared to 7.2 percent in the third quarter.
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