Samsung solidifies position as No. 2

Samsung Electronics Co. Ltd. firmly established itself as the world’s second-largest handset vendor, with about 16% market share, as former rival Motorola Inc. dwindled to 9.4% share in the No. 3 spot.
Samsung shipped 46.3 million handsets in the first quarter, growth of 33% over the year-ago quarter and, according to Strategy Analytics, more than twice the industry average.
That exceeded Nokia Corp.’s growth (27%) and was second only to Korean rival LG Electronics Co. Ltd., which posted more than 54% growth in shipments over the year-ago quarter.
Samsung cited strength in emerging markets, particularly China and India, and “weak demand” in developed markets, including the United States.
That shift led to a decline in ASPs for Samsung, to $141 from $148 in the prior quarter, according to analyst Ittai Kidron at Oppenheimer.
In its outlook, the company cited Strategy Analytics data forecasting 4% to 5% growth for the current quarter over the first quarter, amid “concern for a global economic slowdown due to the U.S. ‘financial crisis.'”
The Strategy Analytics data cited by Samsung reflected that demand is increasing this year in Asian markets and softening in Europe and the United States.
Samsung also said that the current quarter would see new high-end handset launches, including multimedia handsets with 3-megapixel to 5-megapixel cameras, plus new 3G launches.
Samsung’s telecom business, 83% of which is handset-based, earned revenue of $5.6 billion, up 21% year-on-year. Operating profit for the telecom business reached $924 million, up 53% year-on-year, due in part to lower marketing costs, the company said.
Favorable exchange rates and cost management produced a 16% operating margin, up from 11% in the prior quarter, according to Strategy Analytics.
Telecom produced the highest revenue in the quarter for the parent corporation — about one-third of the total — while LCD revenue was second and jumped 53% over the year-ago quarter, the company reported.