Samsung today reported its second quarter 2011 results in Korea as Samsung's Mobile Communications Business saw revenues rise 45 percent year-on-year to 11.69 trillion won. Shipments of mobile handsets increased in the high-single-digit range quarter-on-quarter driven by brisk sales of smartphones including the flagship GALAXY SII, which began to be rolled out globally during the quarter. The average sales price of handsets increased by more than 10 percent. Here is more info:
Samsung Electronics Co., Ltd. today announced revenues of 39.44 trillion Korean won on a consolidated basis for the second quarter ended June 30, 2011, a 4-percent increase year-on-year. For the quarter, the company posted consolidated net income of 3.51 trillion won, representing an 18-percent decrease year-on-year. Consolidated operating profit for the quarter was 3.75 trillion won.
By business segment, Telecommunications drove revenue growth in the second quarter, with sales rising 43 percent year-on-year due to strong demand for Samsung?s GALAXY SII smartphone and other mobile devices. Digital Media & Appliances saw sales increase from the previous quarter supported by improved demand for flat panel TVs.
Operating profit declined year-on-year from the record-setting second quarter of 2010, as weakened demand reduced margins in the Semiconductor and Display Panel businesses. The bottom line was supported by an operating profit of 1.67 trillion won from the Telecommunications businesses.
Smartphone Sales Boost Telecom Profit
The Telecommunications businesses ? including mobile communications and telecommunication systems ? posted an operating profit of 1.67 trillion won on revenue of 12.18 trillion won. The businesses achieved an operating profit margin of 13.7 percent for the quarter.
Samsung?s Mobile Communications Business saw revenues rise 45 percent year-on-year to 11.69 trillion won. Shipments of mobile handsets increased in the high-single-digit range quarter-on-quarter driven by brisk sales of smartphones including the flagship GALAXY SII, which began to be rolled out globally during the quarter. The average sales price of handsets increased by more than 10 percent.
Samsung expected market demand for mobile handsets to increase by more than 15 percent in the second half, driven by consumers upgrading to smartphones. In the third quarter, Samsung will continue to drive sales of the GALAXY SII and strengthen its product lineup with new mobiles featuring Long-Term Evolution technology. The company will also proactively respond to increased demand for tablet devices with its GALAXY Tab portfolio in various sizes. The Mobile Communications Business is on track to achieve its 2011 goals of outperforming market growth and maintaining a double digit operating margin.
For the Telecommunications Systems Business, revenue and operating profit improved year-on-year supported by increased investment from mobile carriers in LTE network infrastructure. Check out our reviews of Samsung phones at: http://www.mobiletechreview.com/Samsung-phone-reviews.htm
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Samsung Reports Q2 Results, Mobile Business Rises 45 Percent
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