Feeds

Samsung DOUBLES profits on strong phone sales

Battle of the superlatives as Huawei predicts great things

Choosing a cloud hosting partner with confidence

Mobile tech giants Samsung and Huawei turned up the heat on their rivals this week after the Korean electronics behemoth doubled its profits in the first quarter thanks to stellar phone sales and its Chinese rival revealed ambitious plans to sell over 100 million mobiles this year.

Samsung’s Q1 financials surpassed even its own optimistic estimates, doubling year-on-year to hit a record 5.85 trillion won (£3.2bn).

Although sales of semiconductors and TVs fell because of ‘seasonal factors’, the firm said that strong growth in display panels and mobile phones more than made up for this, with phones in particular accounting for over 70 per cent of its huge profits.

The Korean tech electronics giant pointed to ‘brisk’ sales of its smartphone/tablet hybrid device the Galaxy Note as well as the Galaxy S II smartphone – which are so impressive it feels the need to spell them out every time in CAPITALS – as key to driving the strong growth.

Meanwhile in China, Shenzhen-based telecoms equipment firm Huawei told Reuters that it expects to nearly double the number of mobiles sold last year by flogging over 100 million phones in 2012, as the firm continues with ambitious global expansion plans.

"We plan to target China, the United States, western Europe and Japan as key markets," Shao Yang, chief marketing officer of Huawei Device, told the newswire.

He also predicted that overall consumer device sales would jump from $7bn (£4.3bn) in 2011 to $30bn (£18.5bn) in five year’s time.

"This means that by that time, the revenue will be comparable to our telecom equipment business. We feel the room for growth for devices is much bigger than the telecom carrier sector," Shao reportedly added.

Given its strong growth to date, the smart money would be on Huawei coming close to achieving its ambitious goals, driven in the smartphone space by the Ascend range led by the super-thin Ascend P 1.

Although the firm posted a disappointing slump in profits its pretty sure to turn these fortunes around in 2012, although some analysts have raised doubts about its ability to make significant inroads in Western markets.

Both firms will be cheered by the news that the market for smartphones closer to home is booming, according to research firm GFK.

Singapore, Malaysia, Thailand, Vietnam, Indonesia, Philippines, and Cambodia registered spikes in demand for smartphones in Q1 2012 of anything from 40 to 400 per cent more than the same period last year, it said.

Overall the value of smartphone sales expanded 62 per cent year-on-year to reach $2.4 billion, with nearly 7.7m units shipped during the first three months of 2012. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Mitigating web security risk with SSL certificates
Web-based systems are essential tools for running business processes and delivering services to customers.