10/27/2008 5:15:00 PM
Samsung profits fall sharply in third quarter
Samsung reported a 36% fall in the profits of its telecoms division in 3Q compared to the previous quarter. Profits fell from £348m during the second quarter to £220m in 3Q. Year-on-year profits were down 15%.
Margins fell from 11% in 3Q last year to 7% this year.
Despite the fall in profits, sales at the telecom division of the handset manufacturer were up 26% year-on-year. During the third quarter this year, sales were £2.7b compared to £2.1b during the same period last year.
Increased sales failed to convert into better profits due to the fall in average selling price of 5.6% quarter-on-quarter.
In total, the manufacturer shipped 51.8 million units, increasing 13% quarter-on-quarter and 22% year-on-year.