Samsung Quarter 1 Reports out, Only Mobile Phones Received Enhanced Profit


Samsung Galaxy SThe Korean mobile manufacturer Samsung has publicly announced its Quarter 1 result for the year 2011. The reports state that the company in its entirety has suffered a decline in its operating profit margin by a third. However, the mobile manufacturing division of the company is reported to have experienced a generous improvement in business. The official report establishes that the mobile division is the only department of Samsung that has managed to give its operating profit figure a modest hike. This has been a quite disappointing and baffling record for the officials as the company has witnessed a growth in the sales sector in all the departments, except for the display division.

The Samsung Telecom division has proclaimed that a sale of $9.5 billion has been made during the first quarter of 2011, the maximum of which has been attained by selling mobile gadgets. The status shows a descent of 8.5% QoQ( Quarter On Quarter) and a growth of  19% YoY(Year Over Year). The operating profit acquired from the sales was up by 1.2% YoY, which is $1.3 billion.

During the first quarter of this year, Samsung has shipped 70 million mobile widgets, with the lot featuring simple phones and smartphones aside tablets. This production status has increased by 9% YoY and decreases by 14% QoQ. But, the good news is that the percentile of smartphone production, which was a slackened 4% of the entire units has risen to an impressive 18%. However, this figure has not since, dropped below 14%, even during the vacation quarter. This is a very positive development for the company and quite competent for the contesting mobiles like Nokia phones, LG phones, etc.

Samsung’s assortment of mobile widgets maintained a strong sale status in its segment of high-end phones. The iconic Samsung Galaxy S earned the bestseller title with its sale reaching gross 14 million devices. However, the co-existing mass market gizmos also experienced a lift in the shipments. However, due to lack of detailed reports, the faring of Android, Windows Phones and Bada smartphones could not be analyzed individually.

The next quarter is expected to be slightly better for Samsung as tech whizz around the world are expecting more dynamic tablets to replace the older smartphones.