Samsung Electronics reported record operating profit for its Mobile Communications and Telecommunications Systems division in Q4 of KRW 1.44 trillion, up 38 percent year-on-year. Revenue rose to KRW 12.11 trillion, from 10.17 trillion a year earlier. Driven by strong year-end demand for the company's smartphones, Samsung’s mobile device sales reached 80.7 million units for the quarter, up 17 percent year-on-year. This brought total sales for the year to 280 million units, up 23 percent. Samsung forecast a "slight contraction" in mobile device sales in the first quarter of 2011 due to weak seasonal demand. For the full year, the company expects high single-digit sales growth, driven by the expanding smartphone and tablet segments. Samsung said it will introduce the successor to its Galaxy S smartphone during the first half of 2011, featuring a dual-core processor and Super Amoled Plus display. The company is targeting smartphone sales of 60 million units for the year, double that of 2010. In the tablet market, Samsung will complement its Galaxy Tab with a range of devices to optimally meet various user needs.
Samsung Electronics reported group revenues of KRW 41.87 trillion for the fourth quarter, up 7 percent year-on-year. Net profit rose 13 percent to KRW 3.42 trillion. Samsung said it expects price competition to intensify in the consumer electronics, IT and mobile device markets in 2011, while major components prices are also forecast to decline. To offset this, the company will focus on the cost competitiveness of its memory semiconductor portfolio, reducing marketing expenses and increasing mobile device shipments. Samsung plans to increase its capex to KRW 23 trillion this year, from KRW 21.6 trillion in 2010.
