South Korea’s Samsung Electronics has posted robust fourth quarter results on the back of strong demand for its Smartphones.
Net profit for the quarter was reported at 3.42 trillion Won ($3.1 billion, £1.9 billion) compared to 3.04 trillion Won, recorded a year earlier. Profits for its Smartphone and mobile devices division was recorded at 1.44 trillion Won compared to 1.05 trillion Won recorded over same period, last year. The company had however, recorded higher profit at 4.46 trillion Won in Q3, 2010 on the back of higher sales of its flat screen televisions.
Samsung expects the demand for its smart phones to drive profitability in 2011. The company hopes that the falling demand for flat panel TVs will be compensated for by higher demand for its Galaxy range of Smartphones and tablet devices.
Cha Kyung-Jin – a fund manager with Golden Bridge Asset Management said: “Samsung is moving in the right direction into Smartphones and tablets. Rising competition is a concern but the pie is also growing”.
A weaker domestic currency has helped Samsung to compete with Japanese rivals such as Sony. However, analysts worry that the Won may gain in 2011 and hurt the company’s profitability.
Samsung is one of South Korea’s biggest conglomerates with presence diverse segments such as home appliances segments, memory chips and flat panel displays.