Samsung target lower-end devices, LTE for growth amid profit drop

Samsung has dropped profits in the last quarter, despite producing record revenue figures.

Samsung has announced its fourth-quarter and FY2013 results, recording revenues of 59.28 trillion won for Q4, a 0.3 percent increase from the last quarter. From an annual perspective, it achieved FY2013 revenue of 228.59 trillion won, the highest it has ever recorded, up 14 percent from the previous year.

The company's profits, however, were down 18 percent from the last quarter, at 8.31 trillion won.

The company identified Europe and China as two key markets for long-term evolution (LTE) and said that to capitalise on this, it will focus on LTE-compatible handsets.

The uptake of tablets is expected to help the company's market share and profitability, and as a result is creating a new "large screen" product category within the business. To further capitalise, it will create new mid to low-end tablet products.

This theme of lower-end products is also helping drive the company's profits in its memory segment. The company said during its earnings call that mid to low-end smartphones have now increased memory demands, resulting in better sales of its DRAM chips.