Samsung Profit Hits Record High on Surging Smartphone Sales

Samsung's rolling in the dough after posting a profit of 5.3 trillion won in 2011, or $4.73 in U.S. currency, representative of a staggering 79 percent year-on-year growth rate. Smartphone sales have been for key for Samsung, and despite ongoing litigation with Apple over patent infringement claims, Samsung's shipped more mobile phones in 2011 than Apple did iPhones, according to data by IHS iSuppli.

"Despite intensified competition amid the global economic slowdown, our Telecommunications businesses continued to post solid earnings with an enhanced line-up of high-end smartphones, resulting in higher average selling price (ASP). Moreover, improved profitability and earnings growth of our Set businesses, including smartphones and flat panel TVs led to our company’s strong earnings," said Robert Yi, Senior Vice President and Head of Investor Relations.

Samsung's full year net income reached 13.73 trillion won (about $12.26 billion) on sales of 165 trillion won (~$147.34 billion). Consolidated revenues for the fourth quarter ended December 31, 2011 checked in at 47.3 trillion won (~$42.23 billion), a healthy 13 percent year-on-year increase. Samsung's Telecommunications business posted a quarterly profit of 17.82 trillion won (~$15.91 billion), up 52 percent from the previously year mostly on the strength of Galaxy S II and Galaxy Note sales, the company said.

While smartphone sales surged, demand for PC DRAM remained weak, Samsung said. The company expects the PC DRAM market to stay sluggish in the first quarter of 2012 due to static global market trends along with the recent disruption in the supply of hard disk drives (HDDs) resulting from severe floods in Thailand.