Money Matters - Simplified

Increased Smartphone sale increase Samsung Q4 revenue

Smartphone sale boosted Samsung's Q4 result by 17% compared to previous year.

According to Samsung increased Smartphone sale boosted their Q4 result in which the company registered 17% increased earning.

Samsung whose Smartphone sale has increased substantially has challenged market leader Apple’s top spot.

According to the analysts if Samsung’s growth continued like this, Apple could lose its top position in the market next quarter.

Increased earning

Increased Smartphone sale has majorly contributed in Samsung’s increased earning whose demands are getting higher in developed economies.

During October-December period Samsung’s net profit was $3.56 Billion which is 17% higher than last year.

During the period 13% sale expanded to 47.3 trillion won for the Korean company in the fourth quarter which is highest, according to the company. The earning is a bit higher what company provisioned earlier in the month.

Samsung’s reaction

In a statement Samsung’s senior vice-president looked pleased with the increased earning company posted. Robert said even in the situation of economic slowdown post solid earning with the high end smartphone.

Robert Yi said, “Despite intensified competition amid the global economic slowdown, our telecommunications businesses continued to post solid earnings with an enhanced line-up of high-end Smartphones, resulting in higher ASP.

Mid-market game

Analysts have called the result impressive, more than what was expected and said Samsung has showed they are not only strong in premium segment but also in the mid-market segment.

An IDC mobile analyst Jeronimo said the fearture market is very important after Nokia’s decline.

Jeronimo said, “The results are extremely impressive. It shows how strong they are in the premium segment but also how much the mid-market is important.”

“The feature phone market is still very important, particularly with Nokia's decline in the last quarter in emerging markets, particularly China.”

Samsung is to set to invest $22 billion to boost production of chips and flat screen TVs in the coming quarters to move ahead it rivals.