Telecom Lead Asia: Galaxy smartphones and chip sales have fuelled Samsung Electronics’ revenue to grow 18.52 percent to $52.4 billion in Q4 2012.
Samsung’s net profit for the final quarter of 2012 reached $6.6 billion, up 76 percent.
Samsung said its operating profit from the division that makes and sells smartphones and tablets more than doubled to 5.44 trillion won in the fourth quarter from 2.56 trillion won a year earlier.
NEWS OF SMARTPHONE MARKET SHARE
According to ABI Research, Samsung retained its lead position overall by shipping 106 million handsets of which 60 million were smartphones in Q4 and capturing 31 percent of total smartphone shipments. In 2012 Samsung grew its handset shipments by 21.6 percent and its smartphone shipments by 123.8 percent.
Despite missing most analyst estimates in Q4, Apple grew its smartphone shipment share to 24.5 percent, up from 16.4 percent in Q3. Apple shipped 47.8 million iPhones in Q4 bringing its 2012 annual total to 135.8 million. Apple’s 2012 annual shipment growth declined from 96 percent in 2011 to 46 percent in 2012.
“It is clear that the iPhone’s hyper-growth has ended, and ABI Research believes that Apple’s market share will peak in 2013 at 22 percent,” said mobile devices senior analyst Michael Morgan. “Unless Apple is willing to trade iPhone margins for low cost iPhone shipments, Apple’s handset market share will become dependent on customer loyalty.”
Samsung, underlining uncertainty about the economy and declining demand for personal computers, is leaving its 2013 capital expenditure at the same level as last year at $21.5 billion.
IT and Mobile Communications accounted for the lion’s share of operating profit in the fourth quarter, racking up 5.44 trillion won on revenue of 31.32 trillion won.
However, Samsung cautioned that the furious growth spurt in the global smartphone market in 2012 would be pacified this year by intensifying price competition compounded by a slew of new products.
“In the first quarter, demand for smartphones in developed countries is expected to decelerate,” it said in a statement.
Chip business contributed $1.3 billion in operating profits, up 39 percent. However, Samsung warned demand in the first quarter of 2013 would be tempered by a seasonal drop in PC and mobile device sales.
