Samsung Shipped 118 Million Handsets in 2006

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Samsung Electronics has announced fourth quarter revenue of 15.69 trillion won (US$16.9 billion) for the period ended December 31, 2006, an increase of 3% over the previous quarter. Operating income for the quarter was 2.05 trillion won (US$2.2 billion), an 11% increase compared with the previous quarter.
"In the fourth quarter, key products powered a recovery in overall earnings despite price declines in some product categories, Samsung's differentiation strategy continues to boost profitability." said Dr. Woosik Chu, senior vice president and head of Samsung Electronics' investor-relations team.
Samsung sold 32 million phones in the fourth quarter, a record high on a quarterly basis due to strong sales of the popular Ultra Edition line. Annual unit sales reached 118 million, surpassing the business unit's annual target figure. Marketing expenditure increases for end-of-the-year sales promotions negatively impacted operating income.
In 2007, Samsung will strengthen its high-performance, premium line-up with the launch of 30 some WCDMA phones and specialty phones that focus on music, video, and messaging functions.
For the outlook of the first quarter, Dr. Chu said, "Samsung Electronics anticipates challenges in key product areas in the quarter, a seasonally weak period. However, we expect stable overall performance in the first quarter with higher demand for DRAM and IT panels from the launch of Windows Vista, a sales increase during the Chinese New Year and the recovery of profits in the mobile phone business." He added, "Our key businesses, such as DRAMs, NAND flash memory chips, LCDs, mobile phones, and flat-panel TVs, will enter into a growth momentum after the first half and we expect significant growth both in revenue and profits in the second half."