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Samsung Electronics reported operating profits of $4.76 billion (5.29 trillion Won) for the quarter ended December 31, 2014, with 37% of it coming from the IT & Mobile Communications Division (IM). This division reported profits of $1.76 billion (1.96 trillion Won) from revenues of $23.7 billion (29.29 trillion Won).

Mobile division

Out of the total IM earnings, the mobile business accounted for $22.5 billion (25.02 trillion Won). Revenues from mobile segment was up 6% from $21.2 billion (23.52 trillion Won) in the previous quarter, but down 23.2% from $29.3 billion (32.56 trillion Won) in the same quarter last year. It accounted for 47.4% of Samsung’s overall revenues.

During the October-December quarter, demand for electronics devices such as smartphones and tablets is traditionally the highest, but Samsung’s smartphone shipments declined slightly in comparison to the previous quarter. As always, the company has released very little operational detail, hence it’s not clear how much the decline really is.

However, earnings improved quarter-on-quarter (QoQ), which the company attributed to efficient cost management and increase in revenue from improved product mix. The company also mentioned that tablet shipments  increased QoQ because of growth in Tab4 sales.

Operational Highlights

– Last month, at CES 2015, Samsung President & CEO B.K. Yoon claimed that all of its products will be Internet of Things (IoT) enabled by 2020. The company said it plans to ensure 90% of all its devices are IoT enabled by 2017. Samsung also announced it would invest over $100 million in 2015 in IoT startups by strengthening its accelerator program and expanding international developer events.

– In December last year, Samsung had informed that it is shutting down its ChatOn messenger service by the 1st of February in all markets except for the US. The company blamed ‘changing market conditions’ for the shutdown, despite having said last month, that the service will go on.

– In the same month, HyunChil Hong took over from B.D. Park as the managing director of Samsung India & president of South West Asia.

Other Businesses

– Samsung reported $2.82 billion (3.13 trillion Won) in profits from its Device Solutions division, which comprises of the Semiconductor & Display Panel businesses, marginally up by 0.8% from the previous quarter.

– The Consumer Electronics division, encompassing the Visual Display, Digital Appliances, Printing Solutions and Health & Medical Equipment businesses, reported profits of $0.16 billion (0.18 trillion Won), up 71.9% from $0.045 billion (0.05 trillion Won) in the previous quarter. The division reported revenues of $12.8 billion (14.27 trillion Won), up 23% from $10.44 billion (11.60 trillion Won) in the previous quarter. The Visual Display business accounted for $8.8 billion (9.79 trillion Won) of earnings.

Financials

Samsung reported overall revenues of $47.5 billion (52.73 trillion Won) for the quarter, up 11% from $42.7 billion (47.45 trillion Won) in the previous quarter. However, it was down 11% from $53.4 billion (59.28 trillion Won) in the same quarter last year.

Download: Press Release