Samsung Electronics shipped 71.4 million mobile phones in the third quarter, up 12 percent from Q2 and up 19 percent year-on-year. Samsung said it outpetperformed the market on strong sales of its Galaxy and Wave smartphones, with the Galaxy S accumulating shipments over 7 million units and the Wave at more than 2 million. The average selling price rose 14 percent from Q2 to USD 122 per phone. Overal the Telecom division reported revenues of KRW 11.12 trillion, up from KRW 9.57 trillion a year earlier. Operating profit improved to KRW 1.13 trillion from KRW 0.95 trillion. For the fourth quarter, Samsung said it's targeting a further increase in its market share and operating margin, helped by an enhanced product mix with new smartphones and the Galaxy Tab and mass-market touch devices for emerging markets. Samsung's total sales in the third quarter were up 12 percent to a record KRW 40.23 trillion, and operating profit rose 15 percent to KRW 4.86 trillion. The net profit came in at KRW 4.46 trillion, also a record, versus KRW 3.81 trillion a year earlier. Samsung attributed the growth to a strong performance in semiconductors and handsets, offsetting weak demand for TVs and PCs and the slow economic recovery. Looking ahead, year-end demand for TVs and mobile handsets is expected to support continued sales growth. However, Samsung expects oversupply in the memory chip market will lead to reduced pricing, while prices for LCD panels will continue to decline. The recent appreciation of the Korean won is also expected to put downward pressure on fourth-quarter earnings. Samsung also announced that total capital expenditure for the year through 30 September reached KRW 15 trillion, representing 83 percent of the total planned outlay of KRW 18.2 trillion for 2010. When including investments in subsidiaries such as Samsung Mobile Display, capex will reach KRW 20 trillion for the year.
