Samsung Q3 results are out: market share and profit increase
The second largest cell phone manufacturer just published its Q3 results and things are looking pretty good. Unlike their neighbors from LG who had a rather rocky quarter, Samsung continue to gain pace and have moved another step forward in their plan to become Numero Uno.
In Q3 the sales of the conglomerate have increased by 12 percent to 35.8 billion US dollars, while net profit rose by 17 percent to reach 4 billion dollars. The mobile division was among the more profitable Samsung businesses, generating 9.9 billion dollars of sales and 1 billion of profit. Those numbers represent an increase of respectively 16 percent and 0.3 percent compared to the same period of last year.
During the past three months Samsung sold 71.4 million handsets, giving them a market share of just over 22 percent (it was 20.8 percent in Q3 of 2009). In comparison, for Q3 of 2009 Samsung only pushed 60.8 million mobile phones.
The average selling price of the Samsung mobile phones has also increased by 14 percent over the previous quarter up to 122 US dollars.
The great success of the Samsung Galaxy S family (which surpassed 7M sales this quarter) and the Samsung Wave (which reached the 2M milestone) are part of the explanation for the success. In general the share of smartphones among all shipped Samsung mobiles is 11 percent (compared to only 2 percent in Q3 of 2009).
Samsung expects the smartphone competition to intensify in Q4 as most companies will launch key products in that period. However the Koreans expect to outperform the market once again and increase their market share even further.
The Galaxy Tab tablet and the new Bada flagship, Wave II, are the key Samsung products for the upcoming three months. In the Q&A after the earnings conference call the South Koreans revealed that they expect to ship more than 6 million Tabs by the end of 2010. The WP7-running Samsung Omnia 7 is the other device carrying high expectations.
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