Samsung Q4 2011 Profit Rose By 17% – Smartphone Business Feels Heat

Must Read

WhatsApp Might Lose 60 Million Indian Users Post Updated Policy Changes, New Survey Reveals!

The Facebook-owned instant messaging platform’s decision to update their privacy and terms of service brought about a...

Uber and Ola In Hot Water: India Authorities Launch Fresh Probe!

The Directorate General of Goods and Services Tax Intelligence (DGGI) sent a summons to Uber and Ola...

Trump Administration Has Landed Its Final Blow On Chinese Companies: Xiaomi Blacklisted!

In its recent move to safeguard national security, the United States’ Trump Administration has decided to go...

Samsung became the world’s biggest IT maker after surpassing the PC manufacture giant HP in 2009 and, currently, the company is leading in TV segment. The company’s Q4 profit has incredibly risen by 17%, but it’s astounding to learn that its Smartphone business has comes under pressure. The increment in the demand of memory chips has leaded the company’s semiconductors profit to the highest level since Q3 of 2010.

The demand of Samsung’s Smartphone augmented to 30% in Q4 of 2011; in spite of this, it contributed a smaller profit margin in Q4—because of low price of Smartphone due to intense competition—than Q3. However, the rise in the demand of Smartphone has incredible contributed at the bottom level to improve the company’s profit.

Samsung reported 35 million Smartphone’s shipment in the last quarter 2011, behind Apple—recently announced 37 million sales of Smartphone in its Q4 2011. The net profit of the company is four trillion in 2011, greater than 3.42 trillion a year ago. In addition, the revenue of the company also rose by 13% to 47.3 trillion from 41.9 trillion. Whereas, operating profit of the company has surpassed its previous record of 5 trillion in Q2 of 2010 to 5.3 trillion in Q4 of 2011.

Advertisements

The operating-profit margin of chip business of the company also grew up to 25.1% in last quarter of 2011 from 19.5% in the Q4 of 2010. Besides, there’s a stringent demand of the company’s flash-memory and logic chips in the market.

Samsung’s investors relations chief—Bob Yi—said, “Samsung’s overall cellphone growth was smaller than the industry’s growth, and the company wants to reverse that in the Q1 of 2012.” Others two main businesses of the company LCD components and consumers electronics goods continued to have a marginal effect on the company’s bottom line.

Samsung is a giant consumers-electronics manufacturer and world’s biggest TVs seller, produced an operating-profit margin of 3.4% which is highest since Q1 of 2010. However, the company has faced a small operating loss in Q4 due to oversupply of LCD screen. Recently, the company has decided to invest on the $41billion on the technology to contend their rival in the battlefield.

Source: Wall Street Journal  

2 COMMENTS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Snapchat Spotlight: A New Way for Creators to Earn Money

Short-form video applications have increased overwhelmingly in popularity in recent times. The surge in this format of...

COVID-19 Unemployment Leading To Ageing Indian Workforce, CMIE Reports

The latest data shared by the CMIE aka Centre for Monitoring Indian Economy has highlighted a huge red flag.

The Slip-Ups Keep On Coming: WhatsApp Web Users’ Mobile Data Leaked On Google

As the developments have unfolded over the past week, the clock for WhatsApp seems to be ticking with every passing minute and...

Trump Administration Has Landed Its Final Blow On Chinese Companies: Xiaomi Blacklisted!

In its recent move to safeguard national security, the United States’ Trump Administration has decided to go after China’s second-biggest smartphone marker...

Huawei Is Gunning For Acquiring A Fifth Of Android’s Userbase With Its Own HarmonyOS!

After Google’s ban on Huawei in 2019, the Chinese-origin tech company is all set to roll out HarmonyOS later in 2021 as...

Battle Lines Are Drawn: Qualcomm’s Latest Acquisition to Challenge Apple, Intel

The quest to gain supremacy creates a butterfly effect for sure. With the challengers and the champion pulling out all stops to...

In-Depth: Dprime

Will ‘TikTok By Microsoft’ Be A Winner?

For the last two years, TikTok has been in the public eye for all sorts of reasons. First, it was the exploded...

Facebook Subscription Model: Looking Beyond Ad Dollars?

Seldom do job listings create a stir this gripping. However, when the job listing in question is a stealth post from Twitter,...

Will The Online Food Delivery Market in India End Up Becoming A Two-Horse Race?

It's pretty much evident that the food delivery space in India is all set to get riled up soon enough as one...

More Articles Like This