Saturday, January 07, 2012

Samsung posts record Q4 2011 profits, while rival HTC's net income drops 26 percent

Handset OEMs Samsung and HTC showed two sides of the same coin on Friday, as the two released their latest financial reports. Samsung showed a record quarterly profit for Q4 2011, but rival HTC, although still in the black, faced news of a 26 percent drop in net income.

H&R Block At Home Online Free Edition
For Samsung, operating profit increased 73 percent to $4.5 billion for Q4 2011. That easily topped the average analyst estimates of $4 billion compiled by Bloomberg. Sales rose 12 percent to $40.5 billion.

Meanwhile, HTC saw its Q4 2011 net income drop to $364 million, down 26 percent year-over-year from $489 million. It also failed to meet analysts expectations, which Bloomberg said was an average of slightly less than $400 million.   It was the first time in two years that HTC's net income had dropped.

Great pricing on mobile phones!
Admittedly, Samsung's earnings were plumped up somewhat after it sold its hard drive business to Seagate for $1.38 billion. Still, the company managed to ship around 32 million smartphones during the quarter, according to estimates by Dongbu Securities. Facing multiple Galaxy devices and the iPhone 4S, HTC's smartphone shipments fell to 10 million units in Q4 2011, and are forecast to fall still further, to 8.5 million units in Q1 2012.

Samsung took the overall smartphone crown (globally) from Apple in October. Whether or not it remained in that spot in Q4, what with the introduction of the iPhone 4S, remains to be seen, but HTC has its hands full competing against two giants such as Samsung AND Apple.

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