Samsung Profits On Mobile Phones, Chips - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

09:02 AM

Samsung Profits On Mobile Phones, Chips

Earnings were the highest quarterly profit in the company's history. Its chip business took the lead, and handset profits also rose.

Samsung posted a profit of about $3.14 billion for the third quarter, thanks to gains in its chip business, and the success of its mobile phone division.

The earnings were the highest quarterly profit in the company's history, and more than triple the earnings for the same period last year. The company's individual businesses all posted gains in operating profits, and its chip business was the most profitable with a 17.6% profit margin. Overall, Samsung posted revenues of $20.9 billion.

The company remains the second-largest handset maker in the world, trailing Nokia, and it shipped a company record 60.2 million phones, a 16% increase from the same period last year. Samsung's average selling price did dip to about $120 per unit, but its profit margin rose to 7.7%.

"This was the first time a vendor other than Nokia has shipped more than one-fifth of the world's handsets since Motorola's Razr-heyday performance of 2006," wrote research firm Strategy Analytics. "The key to Samsung's growth has been an attractive portfolio of touch phones and an expanding retail presence across multiple regions."

Samsung has about 20.8% of the cell phone market, and it plans to focus on smartphones and entry-level devices over the next few quarters. The company's entry-level phones could sell well in emerging markets such as China and India, and high-end handsets as the Android-powered could help boost the division's profit margins.

The company's television unit also saw an increase in shipments and profit margins. Samsung said its TV shipments rose 24% from the same quarter last year, and it had a 16.9% profit margin. The company's liquid crystal display division also reported a 15.3% profit margin, up from 7.9% last year.

NewScale shined in our test of four service catalog offerings: portfolios of services that an IT organization offers its end users. But the competitors--CA, PMG, and have compelling strengths.
Download our report here (registration required).

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
IT Careers: Top 10 US Cities for Tech Jobs
Cynthia Harvey, Freelance Journalist, InformationWeek,  1/14/2020
Predictions for Cloud Computing in 2020
James Kobielus, Research Director, Futurum,  1/9/2020
What's Next: AI and Data Trends for 2020 and Beyond
Jessica Davis, Senior Editor, Enterprise Apps,  12/30/2019
White Papers
Register for InformationWeek Newsletters
State of the Cloud
State of the Cloud
Cloud has drastically changed how IT organizations consume and deploy services in the digital age. This research report will delve into public, private and hybrid cloud adoption trends, with a special focus on infrastructure as a service and its role in the enterprise. Find out the challenges organizations are experiencing, and the technologies and strategies they are using to manage and mitigate those challenges today.
Current Issue
The Cloud Gets Ready for the 20's
This IT Trend Report explores how cloud computing is being shaped for the next phase in its maturation. It will help enterprise IT decision makers and business leaders understand some of the key trends reflected emerging cloud concepts and technologies, and in enterprise cloud usage patterns. Get it today!
Flash Poll