Samsung Q4 reports is out: profits reach record $6.6 billion!

Samsung, the South Korean manufacturing giants and the current cellphone market leader, has revealed its financial results of the fourth quarter of 2012. The reported revenues for the whole company were 56.06 trillion won, a 7% quarterly increase.

The company’s consolidated operating profits were reported at 8.84 trillion won ($8.3 billion), a 10% quarter-on-quarter increase and the net profit was disclosed as 7.04 trillion won ($6.6 billion). However, Samsung’s full year operating profit reached a new high with 29.05 trillion won ($27 billion) on revenues of 201.10 trillion won ($187.2 billion).

 

Samsung mostly has the strong sales of its popular Galaxy S3 and Galaxy Note 2 smartphones to thank for this outstanding performance. Furthermore, strong sales of the company’s display panels and consumer electronic products like LED TVs also resulted in the Samsung’s strong performance.

Samsung expects its low-end and mid-priced smartphone sales rise this year as the company doesn’t face any competition from Apple in those segments. The smartphone shipments are expected to exceed 300 million units in 2013, a 50% rise from previous year.

Samsung, Apple and HTC are now the only three profitable companies in the mobile industry!

Apple, Samsung and HTC are now the only three profitable companies in the mobile industry. Not just that, Apple and Samsung together combined to grab 99% of all mobile profits. HTC got the remaining approximately 1%, according to analyst Horace Dediu of Asymco.

The most notable change is the fact that Apple’s operating profit share dropped expectedly in Q3 2012 to 60%, but as the company launched the iPhone 5 late in the quarter, we expect this to improve slightly in Q4.

Samsung continues to grab more and more of the mobile industry's profits.

Samsung on the other hand grew tremendously with strong sales of its Galaxy smartphone series and grabbed 39% of the market’s profits. HTC got approximately 1%.

Interestingly, Dediu claims no other companies were profitable, but we do know that LG was one company that reported a very tiny profit, but still profit. It might be a fraction of the percentage but it’s still there. Still, Apple and Samsung’s grip on profits seems to be increasing.