Samsung's mobile business going strong, might have sold more smartphones in Q2 than Nokia

Samsung's mobile business going strong, might have sold more smartphones in Q2 than Nokia
The world's N2 cell phone maker by volume reported second quarter earning, citing 18% drop in profits due to weak demand for consumer electronics like LCD TVs and the like. Its mobile business, however, is flourishing.

For some reason Samsung didn't report the total number of handsets sold, and that's for the first time in maybe a decade since it started issuing these quarterly presentations, but our estimates peg the figure between 74 and 76 million handsets sold. The profit margin from its telecom business, however, was a cool 13.7%, the highest number since 2004, due to strong high-end smartphone sales, like the Samsung Galaxy S II.

Cell phone shipments increased 17%-19% year-on-year (Samsung says "high 10%") and 7%-9% ("high single digits", the company says), compared to last quarter's 70 million handsets. The increase is entirely due to smartphone shipments, since the featurephone business registered a small decline. Last quarter Samsung had 18% of its product mix to be smartphones and tablets, i.e. 12.6 million out of the 70 million, and 57.4 million featurephones.

If the featurephone business "slight decrease" means, say, 2%, we'll have 56.25 million sold, and extracting from 75 to 76 million total handsets sold, that pegs the smartphone number 17.75-19.75 million sold, which is higher than Nokia's sales, but lower than Apple's. Even if the featurephone business fell just 1%, Samsung probably still sold more smartphones than Nokia, as we assume the tablets share to be fairly low.

The increase of smartphone share in Samsung's portfolio brought one more positive - the average selling price of its handsets was up in the "low 10%", which might mean anything between 1%-5%, compared to Q1, when we had $129 ASP.

With the Samsung Galaxy S II marching strong, and its pending launch in the US, we can only expect this upwards trend for Samsung's mobile business to continue.

source: Samsung



1. xedd unregistered

now that is a clear excellent business strategies...

2. dionddc

Posts: 129; Member since: Jul 19, 2011

So much for Apple controlling the smartphone market. Samsung sold nearly on par with them. Android must be kicking iOS ass. No news here though, given that it has a 39% market share in the US.

4. ryq unregistered

"might have"? it should have been "Have already". nokia is falling and the pace just got faster after they announce they were abandoning symbian without an alternate os phone ready.

5. Mobile-X-Pert

Posts: 565; Member since: Dec 20, 2010

It's sad how people forget all the great things Nokia did in the past, now they're just bashing and hating Nokia like if it was personal.

6. Case unregistered

I agree with mobile xpert. Like their is no reason to hate Nokia. After all they have done for us in the past. I'll bet many of you had owned a Nokia phone in the past and thought I will always love Nokia.

7. jthiagesan

Posts: 104; Member since: Apr 20, 2011

me too, but still they lag in OS and apps compared to android and apple markets. we cant just keep thinking what they did but we should think what are they doing now?

8. biscutbob

Posts: 82; Member since: Jul 08, 2011

Nokia is good they just have no OS and no apps. The same reason RIM is going down pretty fast as well. The Blackberry is a un rivaled business phone but its applications like nokias OS suck even windows phones are coming up very nicley in terms of apps and and a smooth OS.

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