Samsung shipments jump by a third

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Samsung shipped 46.3 million handsets in the first quarter, up 33 per cent on the same period a year ago.

Samsung Mobile posted revenues of €4.64 billion, up 23 per cent, and operating margin of 16 per cent, up from 13 per cent. Mobile phones accounted for 26 per cent of Samsung’s overall sales and 27 per cent of profit growth.

Samsung said the handset market will grow by five per cent this year.

Ovum analyst Martin Garner commented: "Samsung said it had experienced weaker demand in developed markets, echoing other players’ comments this week. But we understand that it has been gaining share in the US market, largely at Motorola’s expense. Improving its position in the US is one of its key objectives.

"In this quarter its average operating profit per phone was €16, compared to Nokia’s €16.3. But, we should remember that Nokia’s was achieved across a broader portfolio, with 40 per cent of the volume selling at less than €40."

He added: "We should expect the marketing costs to fluctuate during the year, as new products are launched. But the supply chain gains are a step in the direction of one of its other key objectives, which is to build a stronger position in lower price tiers.Samsung has good momentum in the handset market and, having taken the number two position last year, is now opening up a clear gap between itself and the rest."

 

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