Samsung on mobile high after profit sky rockets. And it all thanks to Galaxys.
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Samsung has just announced a net profit of 5.05 trillion won or US$4.5 billion for the first three month to March end (Q1 2012).
This marks a whopping 81% lift from from 2.78tn won profit figure last year.
Overall, Samsung sales rose 22% to 45.27 won in Q1- but its handset division sales of 67.45tr won (which also includes network/IT) outstripped consumer electronics sales figure of 47.02tr won, which includes its TV business.
The Galaxy maker’s handset division accounted for 73% of its company’s total profit figure, meaning smartphones are now the electronics stalwart’s star player.
The Korean electronics giant noted “steady” sales of the existing flagship Galaxy S, Ace, Y, and sales expansion of high-end “strategic” models including phablet Galaxy Note, and S II LTE, which run Android OS.
However, Samung does not release the precise sales of handsets, although analysts reckon it could hit around 90m units.
Smartphone shipments “increased across all regions, especially in the emerging markets” although it noted demand for smartphones and feature phones decreased compared to Q4 2011, due to slowdown in developed markets.
Average selling price of mobile devices increased QoQ led by product mix improvement.
However, despite the slip in smartphone demand, the maker expects consumer demand to pick up slightly going forward, fuelled by 4G LTE handsets on to lead mid/high-end devices.
Just yesterday Optus switched the “on” button in its 4G network – the second live network in Oz. Analysts also predict the number of 4G broadband and mobile capable devices to rocket to 7 million in Oz by 2016.
Samsung’s stellar profit figures comes as arch rival Apple said it sold 35.1 million iPhones in its latest quarter – an 88% unit growth over the same period a year ago. iPad sales rose 151% to 11.8 m.
The iPhone maker reported a 94% profit jump to US$11.6 bn and a 58.9% revenue lift to $39.2 bn for the first three months of 2012.
“We cautiously expect our earnings momentum to continue going forward, as competitiveness in our major businesses is enhanced,” said Robert Yi, head of investor relations at Samsung.
On the TV front, market demand slowed a startling 30% q-o-q amid low seasonality and demand slowdown in the developed countries including Europe and emerging market China.
Demand for Samsung TVs, the biggest maker in the world, remained flat on a year-on-year basis and said market demand for TV’s fell 30% in its latest quarter.
The panel maker also cut the number of units shipped by 9% but profit improved quarter-on-quarter due to shipment increase of OLED panels for smartphones.
However, LED panels were its saving grace with solid earnings in its TV business led by increased sales of LED TVs in both developed/emerging markets.
Demand for TV/digital appliances will continue growing in the emerging markets and improve in the developed markets, Samsung said, forecasting PC demand also to grow “slightly amid market recovery.”
