Galaxy smartphones help manufacturer’s mobile division hit record profit and revenues to overtake Apple as world’s largest mobile firm by revenue
Samsung mobile division recorded revenues of £8.37 billion in its third quarter ending September 30, an increase of 39 per cent on the same period a year ago, to overtake Apple as the world’s largest mobile maker by revenue.
The firm said the record revenues for the division were primarily due to high demand for the firm’s Galaxy range of smartphones.
Operating profit across the telecoms division, which mainly consists of the firm’s mobile operation, hit a record high of £1.14 billion, up 6.2 per cent on the same period in 2010.
However, net profit across all the South Korean firm’s businesses was £1.92 billion, down 23 per cent on the same period of 2010, as a result of falling demand for computer chips and flat panel TVs. Samsung is the world’s largest producer of computer chips, and is the main supplier of memory for Apple’s iPhone.
Samsung does not release exact figures for handset sales. S spokesman said only that total handset shipments were up by 20 per cent on the previous quarter, and smartphone sales were had risen four fold.
The firm is thought to have overtaken Apple in total handset shipments, but still be behind Nokia.
However, Apple’s most recent results do not include sales of the IPhone 4S, and many consumers are thought to have held off from buying an Apple smartphone until after the device was released.
Samsung vice president and head of investor relations Robert Yi said: “Despite the difficult business environment due to the economic slowdown in developed markets, Samsung achieved a solid performance and recovered its double-digit operating profit margin in the quarter, driven by strong sales of our smartphones.”
“In anticipation of explosive growth in the mobile market, we have been focusing on fostering growth of certain component businesses, such as Mobile DRAM, application processors, NAND and OLED panels.
“These industry-leading technologies, combined with our design and software capabilities, have enhanced the competitiveness of our set products.”