Samsung Reports Record Fourth-Quarter Profits
Samsung Electronics today announced its fourth quarter earnings. As expected, the company pulled in record fourth-quarter profits, taking in 7.04 trillion won ($6.5 billion) in net profit. That’s a 7% increase over their third-quarter earnings, and an over 75% increase from its profits in the fourth quarter of 2011.
“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, Head of Investor Relations at Samsung. “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.”
Samsung’s fourth-quarter revenues of 56.1 trillion won ($52 billion) rose on the strength of its mobile device and mobile component sales. Sales of the company’s flagship Android phones, the Galaxy S III and the Galaxy Note, have reached tens of millions of units worldwide. Samsung did mention, however, that sales of DRAM for PCs are down – a sign of the declining PC market itself.
Samsung expects its growth to remain stable throughout 2013, though it cites a “tepid global economy” and increased competition in the mobile device market as possible challenges. The company believes its growth will be driven by its LED TV sets, and expects the market for TVs over 60 inches to grow in 2013.