Samsung Electronics, a global leader in digital media and digital convergence technologies, recently announced a record all-time high for its telecommunications segment in the third quarter of 2011 registering solid quarterly sales of USD 13.32 billion, up 37 percent from the previous year and operating profits of USD2.25 billion. This represents an operating profit margin of 16.9 percent for the quarter.
Samsung announced revenues of USD 36.90 billion on a consolidated basis for the third quarter ended September 30, 2011, a three-percent increase year-on-year. For the quarter, the company posted consolidated net income of USD 3.08 billion, representing a 23-percent decrease year-on-year. Consolidated operating profit for the quarter was USD 3.80 billion. In its earnings guidance disclosed on October 7, Samsung estimated third-quarter consolidated revenues would reach approximately USD 36.65 billion with an operating profit of USD 3.75 billion.
In the Gulf region, Samsung mobiles currently holds 22 percent market share and is looking to increase this share through launching a comprehensive portfolio of tablets, mid-range phones, and smartphones. With this strong and diversified portfolio, Samsung will aim to increase its mobile shipments in the region by 30 percent by the end of this year.
“We’ve had a remarkable year with the launch of our flagship smartphone the GALAXY SII and the launch of our GALAXY tablet range. In the Gulf market we recorded a 60 percent increase year-on-year in mobile communication devices sales for the third quarter of 2011,” said Ashraf Fawakherji, General Manager of Telecommunication Group at Samsung Gulf Electronics.
“In the fourth quarter, we expect the telecommunication segment to grow steadily by 15 percent with the continued strong demand of mobile handsets, tablets and the launch of the new GALAXY Note in the region.” he added.
Globally, Samsung’s Mobile Communications Business saw revenues rise 39 percent year-on-year to USD 12.89 billion. Handset shipments rose more than 20 percent quarter-on-quarter, driven by growth in the smartphone segment where sales were up more than 40 percent on-quarter and 300 percent year-on-year. Samsung continued the global rollout of its flagship GALAXY SII, which has now sold more than 10 million units in the five months since its introduction.
Despite enhanced price competition, the average sales price of Samsung’s handsets increased on-quarter, while sales volume for the GALAXY Tab portfolio of tablets increased with the expansion of the 8.9- and 10.1-inch devices into the lineup.
Samsung expects strong seasonal demand to drive sales of its diverse portfolio of smartphones in the fourth quarter assisted by the launch of new premium devices, including the latest 5.3-inch GALAXY Note which is opening a new mobile device category. Strong demand in the region will sustain tablet growth in the quarter.