Galaxy outshines iPhone

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The South Korean firm today said profits rose 17% to four trillion won (£2.3 billion) in the fourth quarter, and it shipped 300 million handsets in 2011 as the firm's cheaper Galaxy S2 proved a storming success.

Samsung's smartphone push has more than doubled its market share to 19.9%, ahead of Apple's 19%.

This has effectively created a two-horse race for dominance, leaving rivals like HTC and Nokia trailing.

The Galaxy S2 runs on Google's Android software, and has won a host of awards since its launch in May. It is also about £200 cheaper than Apple's iPhone 4S. Samsung plans to launch more phones and tablet computers and spend 25 trillion won on investment in 2012.

It is also benefiting from its diversification into speciality chips for mobile devices, helping to cover losses in its display division, which makes flat-screen panels for televisions.