Samsung smartphone business drives impressive Q4 results

Samsung announced impressive results for the fourth quarter of 2012, while at the same time warning that it is not set for an easy ride in the coming year.

The company’s Mobile Communications (handset) business generated quarterly revenue of KRW27.23 trillion (US$25.3 billion), up 58 per cent year-on-year.

Looking forward Samsung said that “the furious growth spurt seen in the global smartphone market last year is expected to be pacified by intensifying price competition compounded by a slew of new products”.

In the current quarter, demand for smartphones in developed countries is expected to decelerate, although “their emerging counterparts will see their markets escalate with the introduction of more affordable smartphones” throughout the year.

The company is also anticipating continued declines in its feature phone business.

Moving back to Q4, Samsung said its growth was “mainly driven by solid sales of Samsung’s Galaxy SIII and Note II” smartphones, which “beat the popularity of their predecessors with record sales in record time”.

The company noted gains from its “full line-up of entry- to mid-level smartphones, expanded sales of tablet PCS and an increase in average selling price from the previous quarter”.

As usual, the company did not breakout details of its shipment volumes, although figures released by IDC today peg the company at 111.2 million units for the quarter, up 12.3 per cent from 99 million units in the same period of 2011.

The company was the largest global device maker, with market share of 23 per cent, compared with 17.9 per cent for Nokia.

On a group level, Samsung reported a profit of KRW7.04 trillion for Q412, up 76 per cent year-on-year, on revenue of KRW56.06 trillion.

For the full year, it saw a group operating profit of KRW29.05 trillion, on revenue of KRW201.10 trillion.