Samsung Electronics reported revenues from its mobile phone business of KRW 5.40 trillion in the second quarter, up 28 percent from a year earlier. The Korean company shipped 45.7 million handsets during the quarter, down 1 percent from the previous quarter but up 22 percent from a year earlier. The company said that sequential shipments were down slightly due to the global economic slowdown and weak seasonal demand, but it managed to improve revenues thanks to higher sales of mid- and high-end phones in developed markets. Among the highlights were over 1 million Soul phones sold, a 41 percent rise in 3G shipments from Q1 and a 24 percent increase in sales of its 3 megapixel cameraphone. The average selling price was up 1.4 percent from Q1 to USD 143, helped by better sales of high-end phones. Overall, the Samsung Telecom division, which also includes network equipment, posted sales up 27 percent to KRW 6.14 trillion, while operating profit more than doubled to KRW 790 billion from KRW 370 billion a year ago. For the second half of the year, Samsung expects market demand to increase due to seasonality and new product launches, despite the economic slowdown and inflation concerns. The company forecasts the market to grow more than 10 percent compared to the first half, but competition will intensify in the high-end segment due to new smartphone and touchscreen phone launches. For its own business, Samsung expects shipment growth in H2 due to a strengthened product portfolio and distribution channel expansion.

Source:Telecompaper