Samsung achieves record profits

Apple may have overtaken Samsung in Q4 of 2011 as the world's biggest maker of smartphones thanks to a surge in iPhone sales, but that hasn't stopped the creator of the Galaxy S2 from posting impressive figures.

Samsung announced record profits of $4.7 billion, Reuters reported, with Analytics firm Strategy Analytics estimating 36.5 million smartphones from the South Korean manufacturer were sold between October and December.

The healthy balance sheet is attributed to its Galaxy range of handsets, including the aforementioned Galaxy S2, our handset of 2011 winner.

Fund manager Baik Jae-yer of Korea Investment Management said: 'The battle of the two big smartphone powers, Apple versus Samsung, will go on.'

'The smartphone market will expand this year to more mid-and low-end models that are affordable to the wider public. Rather than focus on market share, I'd point out the strong contribution of Samsung's handset business to earnings growth and margins,' he added.

To cement its position as a market leader, Samsung is reportedly going to spend $22 billion to increase chip and flatscreen television production, putting the pressure on its smaller competitors like LG.

Speaking to Reuters, analyst at Shinhan Investment & Securities Kim Young-chan said Apple's dominance is only temporary: 'Apple had good sales, but it's very unlikely this will be a trend that will overwhelm Samsung later.'

'It's unlikely Samsung and Apple will fight over each other's market share, but they will eat up the market share of smaller companies like HTC and RIM,' Young-chan concluded.