Samsung predicts 14pc increase in sales for Q2

7 Jul 2010

Korean consumer electronics giant Samsung said it is predicting a 14pc jump in second-quarter sales and will reap an operating profit of KRW5trn (US$4bn) based on continued success in the mobile phone and TV business.

Samsung, which has just unveiled its Wave HD smartphone as well as the Android-based Galaxy S smartphone, is continuing to press home its advantage in the consumer electronics area. The company is busy consolidating its No 2 position in the global mobile business as well as driving innovation in terms of web-connected HD TVs.

According to the company, its second-quarter revenues are likely to come in at KRW34.6trn, up 14pc on year-ago sales of KRW32.51trn.

For 2009, the company had consolidated sales across all divisions of US$116.8bn.

The company, which employs 188,000 people worldwide and whose semiconductors even feature in rival devices like the iPhone, has been achieving marked success in the mobile-phone industry in a relatively short time.

According to IDC, Samsung’s shipments grew 18pc year on year in the first quarter of this year to to 12.5 million units and market share increased from 27pc in Q1 2009 to 29pc in Q1 2010.

Samsung became the market leader in traditional mobile phones after gaining 10pc market share in the segment, ahead of Nokia.

Samsung shipped 12.2 million traditional mobile phones, for a market share of 40pc in the quarter.

Strong sales of feature phones and touchscreen devices have helped Samsung gain the market leadership in the segment from Nokia. Smartphones continue to be Samsung’s Achilles heel, however. Shipments declined 25pc year on year and market share halved from last year’s quarter, and the lack of portfolio in this segment has had an impact on Samsung.

With the launch of the Wave HD and Galaxy S, things may be about to change.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years