14 DAY TRIAL // South Korean company Samsung Electronics Co., Ltd recently announced the earnings results for the second quarter of the ongoing year. Globally, the company registered an 11.7 percent increase in revenues during the quarter on a yearly basis, reaching 32.51 trillion Korean won, and posted 2.52 trillion won operating profit, up 436 percent compared to the previous quarter of the year.
Samsung’s Telecommunications business also went up compared to the same time frame last year, reaching 10.04 trillion won in revenue, or a 27.4 percent increase, while the operating profit was of 1.00 trillion won, with a 10 percent margin. During the three-month period, the company says, its mobile phones sales reached 52.3 million units, marking a 14 percent increase compared to the previous quarter.
According to Samsung, it managed to see great sales in Europe and North America. At the same time, the company also announced that the average sales prices for its handsets grew 2 percent in the time frame, as touchscreen and high-end mobile phones have seen great traction on the market. Its Telecommunication Systems Division reportedly performed strong in the quarter, managing to secure contracts for the Mobile WiMAX technology in Europe, US and Asia.
The mobile phone maker also stated that the demand for handsets should increase by 5 percent during the third quarter of the year, and that promotions from carriers in advanced markets as well as the expansion of the 3G network in China were expected to help the demand. The company forecasts that it will be able to “exceed its full year sales target of 200 million units” and that it will gain more market share.
“That said, we maintain a cautious view looking ahead to the remainder of 2009 as operating profit may be affected by a possible appreciation of the Korean won and intensifying market competition. We will continue to reinforce our technological edge while seeking greater efficiency in order to maintain our market leadership position,” Robert Yi, vice president and head of Samsung Electronics’ Investor Relations Team, stated.