Computer Business Review

Smartphone sale boosts Samsung's Q1 revenue

CBR Staff Writer

06:05, April 30 2012

Driven by sales of GALAXY Note and GALAXY S II high-end smartphones

Samsung Electronics has reported 22% rise in revenue to KRW45.27trillion ($40bn) during Q1 of 2012 compared to corresponding quarter in 2011.

The company's net profit rose 81% to KRW5.05trillion ($4.46bn) during the fiscal quarter ending 31 March from KRW2.95 trillion ($2.6bn) it recorded a year ago.

Samsung has credited the rise in profit to its IT & Mobile Communications (IM) segment, which reached KRW4.27trillion ($3.8bn) in the first quarter, contributing to 73% of total profit.

Growth in shipments of the company's flagship GALAXY Note and GALAXY S II high-end smartphones, devices yielded high returns, with significant growth in China, Central and South America, the Middle East and Africa, the company said.

The operating profit also logged a record high of KRW5.85trillion ($5bn), up from KRW5.3trillion ($4.6bn) in the previous quarter, with an increase in profitability in display panels and mobile phones.

Samsung Electronics senior vice president and head of investor relations Robert Yi said, "Despite difficult business environments including seasonal low demand for major products such as PCs and TVs amid a global economic slowdown, we achieved record quarterly results based on our differentiated products and technology leadership."

Profits from semiconductor business including Memory and System LSI were KRW760 billion ($671.8m) in the first quarter, while the revenue was KRW7.98 trillion ($7bn), a 13% decrease compared with the same period last year.

Samsung's Consumer Electronics businesses, which encompass Visual Display and Digital Appliances, reported profits of KRW530 billion ($468.5m) in the quarter, up 550%.

Operating profit for the Display Panel Business turned around to KRW280 billion ($247.5m), by expanding sales of high-end premium panels such as LED TV and 3D panels, and high-resolution panels for tablet PCs and OLED panels for smartphones.

The Telecommunication Systems business saw growth both in revenue and operating gains due to an increase in Long Term Evolution wireless broadband technology equipment, and IT Solutions, a boost in sales of mid-to-high-end products, including PCs and printers.

Samsung plans to invest a total of KRW25 trillion ($22bn) in this year, where KRW15 trillion ($13bn) will be invested in the Semiconductor Business and KRW6.6 trillion ($5.8bn) for the Display Panel segment.

Looking into the second quarter, the company expects to improve profitability in the chip business with a recovery in PC DRAM price and by expanding its new product category with mobile application processors based on 32 nanometer-class process technology.



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