Smart phones power Samsung to big profits

Smart phones power Samsung to big profits

SEOUL - Agence France-Presse
Smart phones power Samsung to big profits

A woman looks at the cases for Samsung phones in Seoul, South Korea.

South Korea’s Samsung Electronics on Jan. 27 reported a record operating profit of 5.3 trillion won ($4.72 billion) in the fourth quarter, due to booming smart phone sales.

The company also announced a 25 trillion won investment in its chip-making and panel-making business.
However, the world’s largest technology firm by revenue slipped to back second place behind rival Apple in terms of smartphone sales, according to research.

Samsung’s telecoms businesses accounted for 2.64 trillion won out of the total quarterly operating profit, with the flagship Galaxy S2 and Galaxy Note brands largely credited for the strong result.

“Despite intensified competition amid the global economic slowdown, our telecommunications businesses continued to post solid earnings with an enhanced line-up of high-end smart phones, resulting in higher average selling price,” said senior vice-president Robert Yi in a statement. The overall quarterly operating profit figure, a 76 percent increase year-on-year, was largely in line with the earnings guidance issued early this month by the firm.