Mobile
News
11/2/2009
09:02 AM
50%
50%

Samsung Profits On Mobile Phones, Chips

Earnings were the highest quarterly profit in the company's history. Its chip business took the lead, and handset profits also rose.

Samsung posted a profit of about $3.14 billion for the third quarter, thanks to gains in its chip business, and the success of its mobile phone division.

The earnings were the highest quarterly profit in the company's history, and more than triple the earnings for the same period last year. The company's individual businesses all posted gains in operating profits, and its chip business was the most profitable with a 17.6% profit margin. Overall, Samsung posted revenues of $20.9 billion.

The company remains the second-largest handset maker in the world, trailing Nokia, and it shipped a company record 60.2 million phones, a 16% increase from the same period last year. Samsung's average selling price did dip to about $120 per unit, but its profit margin rose to 7.7%.

"This was the first time a vendor other than Nokia has shipped more than one-fifth of the world's handsets since Motorola's Razr-heyday performance of 2006," wrote research firm Strategy Analytics. "The key to Samsung's growth has been an attractive portfolio of touch phones and an expanding retail presence across multiple regions."

Samsung has about 20.8% of the cell phone market, and it plans to focus on smartphones and entry-level devices over the next few quarters. The company's entry-level phones could sell well in emerging markets such as China and India, and high-end handsets as the Android-powered could help boost the division's profit margins.

The company's television unit also saw an increase in shipments and profit margins. Samsung said its TV shipments rose 24% from the same quarter last year, and it had a 16.9% profit margin. The company's liquid crystal display division also reported a 15.3% profit margin, up from 7.9% last year.


NewScale shined in our test of four service catalog offerings: portfolios of services that an IT organization offers its end users. But the competitors--CA, PMG, and Service-now.com--also have compelling strengths.
Download our report here (registration required).

Comment  | 
Print  | 
More Insights
InformationWeek Elite 100
InformationWeek Elite 100
Our data shows these innovators using digital technology in two key areas: providing better products and cutting costs. Almost half of them expect to introduce a new IT-led product this year, and 46% are using technology to make business processes more efficient.
Register for InformationWeek Newsletters
White Papers
Current Issue
InformationWeek Tech Digest, Dec. 9, 2014
Apps will make or break the tablet as a work device, but don't shortchange critical factors related to hardware, security, peripherals, and integration.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.