Samsung's phone sales mask loss in panels

Samsung Electronics Co.'s fourth- quarter profit rose 17 per cent as surging smartphone sales helped Asia's largest consumer-electronics company keep pace with Apple and overcome a loss at its flat-panel business. Net income was 4 trillion won (Dh13.1 billion), compared with 3.42 trillion won a year ago, the Suwon, South Korea-based company said in a statement yesterday. The average of 28 analyst estimates compiled by Bloomberg was 3.99 trillion won. Sales rose 13 per cent to 47.3 trillion won, in line with a preliminary estimate announced Jan. 6. Samsung shipped more smartphones last year than Apple did iPhones, with the popularity of its Galaxy models helping the Korean company sell a record 300 million handsets. Samsung, whose parent group plans a record investment this year, is introducing more phones and tablet computers to cushion slumping profits at its liquid-crystal display business amid a global economic slowdown. "They have such a good product line from top to bottom," said Kim Chang Yeul, a Seoul-based analyst at Asset Securities. "The economic slowdown won't be much of an issue for their phone sales. Only Samsung and Apple phones are selling these days." Article continues below Operating profit was 5.3 trillion won, in line with the company's preliminary estimate of 5.2 trillion won. Full-year net income fell 15 per cent to 13.7 trillion won, while sales climbed 6.7 per cent to a record 165 trillion won. Top seller Samsung was the top smartphone seller in 2011, more than doubling its market share to 19.9 per cent, though Apple sold more handsets in the fourth quarter, Strategy Analytics said today. Apple had a 19 per cent share last year after selling 37 million iPhones in the three months ending in December, compared with Samsung's 36.5 million.