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Samsung Q4-2012 Results- A Supply Chain Matters Perspective

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Supply Chain Matters provides somewhat of a contrast to our commentary related to Apple’s latest December ending quarterly results.  Arch rival Samsung has also reported quarterly results and the highlights are impressive, along with the business implications. Samsung’s fourth quarter profits, a record high, surged 76 percent from the year-ago period while revenues increased 18.5 percent.  The maker’s cellphone and telecoms business was reported as accounting for 62 percent of operating profit in the quarter, but product margins for cellphones declined 1.4 percent to 17.4 percent.  Samsung also reported a healthy jump in profits within its semiconductor division, while the liquid crystal display (LCD) improved its margins by producing more organic light emitting diode (OLED) displays. While Samsung does not publically disclose output volumes, equity analysts and business media estimate that Samsung sold upwards of 60 million smartphones, and 100 million cellphones during the recent quarter.  Contrast that number with […]