Record profits spark Samsung spending spree
By Reuters
Posted on 27 Jan 2012 at 09:29
Samsung posted a record $4.7 billion (£3bn) quarterly operating profit, driven by booming smartphone sales, and will spend $22 billion this year to boost production of chips and flat screens.
The South Korean company, the world's top technology firm by revenue, is locked in competition with Apple in the smartphone market.
Apple, overtaken by Samsung in the third quarter, regained its crown as the world's biggest maker of smartphones in the fourth quarter, with record sales of just over 37 million iPhones.
Samsung didn't give its own sales volume data, but research firm Strategy Analytics put sales at 36.5 million smartphones in October to December, with third-ranked Nokia on 19.6 million.
Samsung's telecoms business earned a record 2.64 trillion Won profit (£1.5 billion) in October to December on increased sales of its flagship Galaxy smartphones.
"The battle of the two big smartphone powers, Apple versus Samsung, will go on," said Baik Jae-yer, fund manager at Korea Investment Management.
"The smartphone market will expand this year to more mid-and low-end models that are affordable to the wider public," Baik said. "Rather than focus on market share, I'd point out the strong contribution of Samsung's handset business to earnings growth and margins."
Samsung will increase spending this year by 9% to 25 trillion Won, with 15 trillion Won going to the chips division, 6.6 trillion Won to flat screens and the rest to boosting overseas production capacity and new research and development centres.
From around the web
Apple board take note?
Perhaps Apple should take note of what to do with billions spare from their main rival in the smart phone market?
By skarlock on 27 Jan 2012 ![]()
R&D
Apple can't invest in manufacturing if they use third parties - they don't seem to need it for R&D - looks like the lawyers are going to have a good 2012.
By dubiou on 27 Jan 2012 ![]()
More money? Oh good now maybe Kies will improve
Samsung was always destined to kick Apples butt with their hardware and its no suprise that their revenue is reflecting it.
Now maybe Samsung will invest in a decent team of programmers to fix the unusable bug ridden disaster that is Samsung Kies; the software suite to connect their devices to a Mac and PC..
By bigliam1970 on 27 Jan 2012 ![]()
@bigliam1970
What's wrong with Kies? It's actually surprised me with how un-rubbish it is. Compared with the Nokia suite for my old e61 and e71, which was amazingly horrendous (unstable, cumbersome and illogical to boot), Kies and KiesAir is positively brilliant.
The only problem I used to find is that it would only connect my phone once per session, but the update a couple of months ago seems to have fixed that.
By TheHonestTruth on 27 Jan 2012 ![]()
No
Dear Samsung,
I spent over 1k importing the 7 Slate and while it was a fantastic slice of kit it featured one obvious flaw, Screen lift, which you still haven't addressed.
No wonder you're making a massive profit!
Other points:
- Your global warranty service is a joke
- The driver section of the UK support section is terrible.
Thanks,
Someone that nearly purchased a 60" Samsung Television but has decided NEVER to buy your stuff again (If I can help it)
By rhythm on 27 Jan 2012 ![]()
@TheHonestTruth
You're kidding, really!?
Kies (PC) is rubbish, just the other day I tried to plug in my SGS2 to update the f/w. Kies just wouldnt recognise it. Eventually i got it going after wrangling with drivers.
Then I tried doing the same thing with my tab 10.1. Just wouldnt have it!
Luckily the Kies over Wifi feature did it...
Ultimately, not even as good as iTunes.
By Heliosphan on 28 Jan 2012 ![]()
@thehonesttruth
Kies WILL NOT do the following;
1. Allow you to connect to the internet to do ANYTHING with Samsung Apps or firmware updates if you are behind a proxy server.
2. Allow you to connect an Andriod phone through a bluetooth connection.
3. Back-up your phones state.
4. Allow me to drag and drop files from the Kies Desktop to my Windows Desktop
5. Have grammatically correct dialogue boxes and a properly spelled user interface.
Kies WILL do the following;
1. Sync my contacts and diary with Outlook with the inevitable errors.
2. Erm... That's it.
Google 'galaxy s forums' for more evidence of how much this software is hated.
By bigliam1970 on 31 Jan 2012 ![]()
@thehonesttruth
Kies WILL NOT do the following;
1. Allow you to connect to the internet to do ANYTHING with Samsung Apps or firmware updates if you are behind a proxy server.
2. Allow you to connect an Andriod phone through a bluetooth connection.
3. Back-up your phones state.
4. Allow me to drag and drop files from the Kies Desktop to my Windows Desktop
5. Have grammatically correct dialogue boxes and a properly spelled user interface.
Kies WILL do the following;
1. Sync my contacts and diary with Outlook with the inevitable errors.
2. Erm... That's it.
Google 'galaxy s forums' for more evidence of how much this software is hated.
By bigliam1970 on 31 Jan 2012 ![]()
@heliosphan
hm, perhaps I've just been lucky thus far, but my Kies has always been fairly good at recognising my GS2. But then maybe it's because I'm comparing it to the Nokia pile o' cr*p so it's only decent in a relative light.
@bigliam
Yep, I think it only does points 3 and 4 of your list (and perhaps 4 only through KiesAir). :(
By TheHonestTruth on 1 Feb 2012 ![]()
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