Samsung’s telecom division reports healthy H1; expects more of the same in H2

Samsung Electronics, the global digital media and digital convergence technologies company, announced strong global financial earnings for its telecommunications segment in Q211 registering a solid quarterly operating profit of US$1.59 billion on revenue of US$11.57 billion.

Samsung’s telecommunications businesses – Mobile Communications and Telecommunications Systems – achieved an operating profit margin of 13.7 per cent for the quarter. The segment also recorded a rise in sales with 43 per cent year-on-year due to strong demand for Samsung’s GALAXY S II smartphone and other mobile devices.

Regionally, Samsung recorded an average of 20 per cent market share in the Gulf countries of UAE, Kuwait, Qatar, Bahrain and Oman. The Galaxy S II smartphone, which was recently launched in the region, is expected to increase Samsung’s market share in the Gulf by 10 per cent by the fourth quarter of 2011.

“In the Gulf market we recorded a seven per cent increase year-on-year in mobile communication devices sales for the second quarter of 2011,” said Ashraf Fawakherji, GM of Samsung Gulf Electronics Telecommunication Group.

“In the third quarter, we expect the telecommunication segment to grow steadily by 20 per cent with the continued strong demand of the mobile handsets and the launch of the new portfolio of tablets in the region. We will aim to increase our mobile shipments in the region by 30 per cent in the second half of the year,” he added.

Globally, Samsung’s Mobile Communications business saw revenues rise 45 per cent year-on-year to US$11.11 billion. Shipments of mobile handsets increased in the high-single-digit range quarter-on-quarter driven by brisk sales of smartphones. The average selling price of handsets increased by more than 10 per cent.

Samsung expects market demand for mobile handsets to increase by more than 15 per cent in the second half, driven by consumers upgrading to smartphones.