Samsung reports strong Galaxy S sales

Caroline Gabriel/Rethink Wireless
11 Oct 2010
00:00
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Daily News

Samsung is well on its way to hitting its ambitious smartphone targets with the success of its Galaxy S Android flagship, which has already sold 5 million units since its international launch.

The launches have been well supported by lavish marketing dollars from the vendor and its key carrier partners.

However, despite all its efforts, it still expects its third quarter financial results to be a mixed bag.

For the three months to September 30, the Korean giant is forecasting consolidated operating profit of between 4.6 trillion and 5 trillion won ($4.1b-$4.5b). That would be higher than the 4.22 trillion won of the year-ago quarter, but less than the 5.01 trillion won reported in the second quarter of this year.

Sales are expected to be up year-on-year to between 39 trillion and 41 trillion won, compared with 35.9 trillion won a year earlier.

Strong points are expected to be the whole handset business - especially the start of real impact in smartphones plus rising volume and share in emerging economies - and the memory unit. In Q2 the mobile division accounted for 21% of sales and this may be on the up.

Samsung's initial Galaxy S launches were in its homeland, where 1 million units have sold, and - more importantly for its global ambitions - the US, where it created a different variant and brand name for each of the four top carriers.

It has sold 2 million units in the US and the same number internationally. This means that the vendor has almost matched its 2009 smartphone sales figure in just two months.

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