Life is good at Samsung – no pun intended, considering that’s the slogan of their primary competitor (LG) who had a rough 2010. Samsung issued an Investor Relations press release today that thoroughly discusses the health of the company. Highlights include smartphone success, tablet screen development, and an upcoming announcement of a dual-core Galaxy S phone in the first part of 2011.
Revenues and Net Income both grew year-over-year for Samsung, 7% and 13% respectively with a total operating profit of $2.7 Billion dollars. Where exactly did those increased numbers originate? Samsung largely points to their smartphones:
Samsung’s performance in the fourth quarter continued to be driven by memory semiconductors and strong sales of its cutting-edge smartphones. On a quarter-on-quarter basis, however, profit margins decreased primarily due to weakening pricing for memory semiconductors and LCD panels, as well as price competition in the TV market.
They weren’t shy about the success of their Samsung Galaxy S, announcing they’ve sold 10 million units and also enjoyed “strong year-end demand” with the Galaxy Tab. But the Galaxy S wasn’t their only winner: they sold 280 million units on the year, making me wonder what the device-by-device breakdown would be. Other stats they slide into their smartphone summary include:
- Record 4th quarter operating profit of 1.3 Billion (up 38%)
- 4th quarter revenue of 12.8 Billion
- Total 2010 Revenue = 37 Billion
- Total 2010 Profit = 3.8 Billion
While the Galaxy S hit a sweet spot, Samsung is planning to grow in two related and nearby opportunities: screens for lower-end phones and tablets.
Samsung aims to drive market growth with a new line-up of entry-level LED panels and explore the high-potential market for tablet PC panels.
They also indicated a dual-core version of the Galaxy S with a Super AMOLED Plus screen will be announced in the first half of the year. We’re expecting that announcement to come in February at Mobile World Congress, with rumors pegging the device as the Samsung Galaxy S2. The manufacturer believes their smartphone sales will double to 60 million units in 2011 and they promise their Galaxy Tab lineup will be expanded for more offerings to meet a wider set of user needs.
It sounds like Samsung has a really good thing going and hopefully they’ll speed right along with more Galaxy devices, both phones and tablets, to feed our Android hunger!