Samsung reports higher profits in Q4 2011

Samsung is doing pretty well in getting its smartphones out to the public. Today Reuters reports that according to its prelimiary figures the South Korean-based company will generate a profit of 5.2 trillion won ($4.5 billion) for the fourth quarter of 2011. The final financial results will be revealed in the coming weeks. The results were better than expected from financial analysts.

Samsung was already named as the world's best selling smartphone maker over Apple a few months ago. In December it announced it had already sold 300 million mobile phones (both feature and smartphone) in 2011 worldwide.

It is predicted that the company sold 35 million smartphones in the fourth quarter of 2011. Much of that success has come from sales of Samsung's Galaxy S and Galaxy S II products which have used Android 2.3 as its operating system. There are rumors that the Galaxy S III could be announced in February.

All in all it seems that Samsung is in the driver's seat as far as offering consumers an alternative to Apple's iPhone products. Earlier today HTC and Motorola, which also sell Android-based smartphones, reported lower than expected earnings for the fourth quarter.

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Good to hear that they are doing well! I am very impressed with my SGS2 as is my girlfriend. I think the only thing that could replace this awesome phone will be when the new Nexus is announced in June as you get Android Jelly Bean, A Google Experience aka fast/constant updates straight from Google and no touchwiz

Samsung make only small portion of it's profit from phones. 90% of the 300M are low-end/feature phones. Samsung lose on WP7 sales with about 7,000 sales per day.
The main profit comes from chip, led, hard disk manufacturing.

Samsung Electronics , the world's top maker of memory chips and smartphones, reported a record quarterly profit on Friday, aided by one-off gains and best-ever sales of high-end phones....

Samsung is also weathering a squeeze on its bread-and-butter memory chip business with new revenue sources such as mobile processing chips and high-end OLED displays. Key rivals are increasingly turning to Samsung for components to power their tablets and smartphones...

One-off gains expected in the fourth quarter include around 500 billion won from the sale of its hard disk drive business to Seagate Technology, ..

alexalex said,
Samsung make only small portion of it's profit from phones. 90% of the 300M are low-end/feature phones. Samsung lose on WP7 sales with about 7,000 sales per day.
The main profit comes from chip, led, hard disk manufacturing.

Samsung Electronics , the world's top maker of memory chips and smartphones, reported a record quarterly profit on Friday, aided by one-off gains and best-ever sales of high-end phones....

Samsung is also weathering a squeeze on its bread-and-butter memory chip business with new revenue sources such as mobile processing chips and high-end OLED displays. Key rivals are increasingly turning to Samsung for components to power their tablets and smartphones...

One-off gains expected in the fourth quarter include around 500 billion won from the sale of its hard disk drive business to Seagate Technology, ..

How can you lose on something that's not being sold for a loss at all? I could understand if you said they don't make much off of WP cuz of slow sales but a loss? In what world is 7k a day a loss?

Cuz there are license fee's and other costs for manufacturing WP... 7K a day is a very little number if you think globally.

GP007 said,

How can you lose on something that's not being sold for a loss at all? I could understand if you said they don't make much off of WP cuz of slow sales but a loss? In what world is 7k a day a loss?

yodat said,
Cuz there are license fee's and other costs for manufacturing WP... 7K a day is a very little number if you think globally.

Those fees go hand in hand with how many they actually make which we don't know about anyways. If they made 100k Focus S's for example then it's nothing at all, Samsung probably does the smart thing and makes an initial batch of what they expect to sell then if new orders come in they'll make more, no one makes a boat load and just has them sitting there.

Hell, just do the math, if the 7k a day is right, that's 210k a month, say the average price is $200 a pop that's $42 million per month, and I doubt samsung sells phones at a loss to the carriers or retail. So licensing and production costs are part of the retail price in the end.

GP007 said,

How can you lose on something that's not being sold for a loss at all? I could understand if you said they don't make much off of WP cuz of slow sales but a loss? In what world is 7k a day a loss?

Do you realize it take Billions to setup a manufacturing plant , warehouses, transportation, publicity.....

alexalex said,

Do you realize it take Billions to setup a manufacturing plant , warehouses, transportation, publicity.....

Do you realize that Samsung already has manufacturing plants and doesn't setup a new one for each model of phone they make? Same for warehouses and transportation etc. You're really not thinking this through enough it seems.