Demand for digital media and appliances drive Samsung quarterly revenues
Samsung Electronics Co. Ltd., a global leader in the consumer electronics industry, recently announced revenues of $37.48bn on a consolidated basis for the second quarter ended June 30, 2011, a 4% increase year-on-year. For the quarter, the company posted consolidated net income of $3.34bn, representing an 18% decrease year-on-year. Consolidated operating profit for the quarter was $3.56bn.
While a majority of the profits came through Telecommunications, audio visual products including SMART TVs, LEDs, and flat panel screens saw strong growth and an increase in revenue. The Digital Media & Appliances (DMA) businesses – including Visual Display, IT Solutions and Digital Appliances – posted revenues of $13.37bn for second quarter. The operating profit of $485m represented an improvement on the $95.02m registered the same period last year.
Samsung’s flat panel TV shipments and profitability both increased for the quarter, as sales of LED TVs continued to pick up in developed and emerging markets. LED TV sales accounted for roughly half of all Samsung LCD TVs sold for the quarter, reflecting the wide acceptance of the new technology.
Mr. Justin Shaw, General Manager of AV division, Samsung Gulf Electronics said, “We are very pleased with the quarterly results for the DMA businesses. Since the launch of Samsung’s Smart TVs in the region, sales have increased almost 4% every month. We project this growth to continue in this region as demand for SMART TVs increase.”
Overall, flat panel TV market demand in the third quarter is projected to increase in the mid 10% range quarter-on-quarter supported by strong seasonality. In emerging markets, demand for flat panel TVs increased almost 20%.
Samsung also aims to expand sales of Smart TVs by providing region-specific TV applications and content for viewers. In the UAE, Samsung launched the 3D Video-on-Demand (VoD) service, available for free via its Smart TV platform. The service allows users to stream nearly 41 free 3D content through a specially designed SMART TV app, Explore 3D.
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About Samsung Electronics Co., Ltd.
Samsung Electronics Co., Ltd. is a global leader in semiconductor, telecommunication, digital media and digital convergence technologies with 2010 consolidated sales of $135.8bn. Employing approximately 190,500 people in 206 offices across 68 countries, the company consists of nine independently operated business units: Visual Display, Mobile Communications, Telecommunication Systems, Digital Appliances, IT Solutions, Digital Imaging, Memory, System LSI and LCD. Recognized as one of the fastest growing global brands, Samsung Electronics is a leading producer of digital TVs, semiconductor chips, mobile phones and TFT-LCDs.
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