Galaxy S and Wave boosts fourth quarter turn-over growth by 60 percent.
Samsung Electronics, a leading mobile phone and telecommunication equipment provider, recently revealed outstanding global financial results for mobile phones in the fourth quarter of 2010. Samsung’s telecommunications businesses – Mobile Communications and Telecommunications Systems – registered a record quarterly operating profit of 1.29 Billion US Dollars for the period, up 38 percent year-on-year. Samsung Mobile registered the fourth quarter revenue at 10.86 Billion US Dollars, compared with 9.12 Billion US Dollars for same period of 2009. Samsung Mobile continued its outstanding performance for 2010 by finishing the year strongly with an operating profit of 3.86 Billion US Dollars on sales of 36.9 Billion US Dollars for its telecommunications businesses.
Samsung achieved global revenue of 37.56 Billion US Dollars on a consolidated basis for the fourth quarter ended December 31, 2010, a 7-percent increase year-on-year. For the quarter, the company posted consolidated net income of 3.06 Billion US Dollars, a 13-percent increase year-on-year. Consolidated operating profit for the quarter was 2.7 Billion US Dollars. In its earnings guidance disclosed on January 7, Samsung estimated fourth-quarter consolidated revenues would reach approximately 36.7 Billion US Dollars with an operating profit of 2.69 Billion US Dollars.
On a regional level, Samsung’s Gulf region recorded about an average of 20 percent market shares in UAE, Kuwait, Qatar, Bahrain and Oman. The rollouts of Galaxy S and Wave smartphones in the region were the primary drivers of continued sales growth and boosted the mobile phone division’s fourth quarter turn-over growth by 60 percent.
In the Gulf region, 2011 will be the year we focus more on matching all our customers’ requirements and continue launching mobile phones that offer different operating systems, the latest technologies and the best designs for our consumers. Samsung’s Mobile business anticipates a positive growth in the region as more consumers are expected to transition to smartphones in 2011 as the ultimate experience aligns with their personal needs and demands.
“We accomplished our fourth quarter goals in the Middle East due to the rising demand of smartphones in emerging markets. Due to our diverse product mix of mass-market smartphones and touch-screen feature phones, we were able to register a solid sales growth for 2010,” commented Mr. Young Woo Jun, Mobile Phone Sales and Marketing Director of Samsung Gulf Electronics.
“For 2010, we had launched our comprehensive portfolio of smartphones such as the Galaxy S, Galaxy Tab, Wave and its series to meet the increasing demand of smartphones and replacement demand for full-touch screen phones,” Jun continued. We can expect a strong market growth for the mobile division as we plan on more than double the smartphone shipments in 2011.
Samsung’s global performance in the fourth quarter continued to be driven by memory semiconductors and strong sales of its cutting-edge smartphones. The fourth quarter results brought Samsung’s full year 2010 revenue to an all-time high of 138.72 Billion US Dollars, up 13-percent from last year. Net income reached a record high of 14.49 Billion US Dollars, up 65 percent compared with the previous year, while operating profit was 15.52 Billion US Dollars, also a record.
In the fourth quarter of 2010, the strong smartphone growth powered the mobile business with the strong year-end demand for the company’s flagship smartphones including the Galaxy S smartphone which had achieved worldwide sales of 10 million units and the Galaxy Tab – an Android-powered tablet device – attracted strong year-end demand. Samsung’s global mobile device sales reached 80.7 million units for the quarter, up 17 percent year-on-year. This brought total sales for the year to 280 million units, registering growth of 23 percent and outperforming the overall market.
Samsung forecast high single-digit sales growth for the year overall, driven by the fast-expanding smartphone and tablet segments. Samsung announced it will introduce the successor to its Galaxy S smartphone during the first half of 2011, featuring a dual-core processor and Super AMOLED Plus display to further enrich user experience. With its growing lineup, the company is targeting smartphone sales of 60 million units for the year, double that of 2010. In the tablet market, Samsung will complement its Galaxy Tab with a range of devices to optimally meet various user needs.