Samsung returns to positive smartphone growth

Samsung Galaxy S6 launch in Korea
The smartphone business of Samsung Electronics, according to telecom analysts, is on a recovery path.

The first indication is that the revenue of Samsung Electronics in Q3 2015 rose 8.93 percent from a year earlier and 6.48 percent from the previous quarter to 51.68 trillion won.

The second indication is about the Samsung shipments of 83.8 million smartphones worldwide in Q3 2015, growing 6 percent annually from 79.2 million units in Q3 2014. Samsung has finally returned to positive smartphone growth for the first time in six quarters since Q1 2014.

“Samsung has finally returned to positive smartphone growth for the first time in six quarters since Q1 2014. Its smartphone division is back on the road to recovery. Samsung’s smartphone growth is being driven by select price cuts and attractive new models like the Galaxy Note 5, A8 and J5,” said Neil Mawston, executive director at Strategy Analytics.

The Korean company said it posted a double-digit growth in Q3 operating profit thanks to a record profit in the chip-making business.

Consolidated operating profit of the world’s largest maker of smartphones, memory chips and TVs rose 82.08 percent year on year and 7.18 percent quarter on quarter to 7.39 trillion won or $6.48 billion during September quarter.

After bottoming at 4.06 trillion in the third quarter of 2014, the profit kept growing to 5.98 trillion won in the first quarter and 6.9 trillion won in the second quarter this year.

Net income advanced 29.28 percent from a year earlier to 5.46 trillion won in the third quarter.

Global smartphone shipments grew 10 percent annually to reach 354 million units in the third quarter of 2015.
Samsung shipped 83.8 million smartphones worldwide in Q3 2015, growing 6 percent annually from 79.2 million units in Q3 2014.

Apple shipped 48.0 million smartphones and captured 14 percent market share in Q3 2015, rising from 12 percent in Q3 2014. Apple’s iPhone 6 and 6 Plus models remained popular worldwide, especially in China and the United States.

Meanwhile, LG Mobile Communications Company reported shipments of 14.9 million smartphones, a 6 percent increase from the previous quarter.

Despite a 12 percent sales increase in North America, revenues of smartphone business fell 21 percent year on year and dipped 7 percent quarter on quarter to KRW 3.38 trillion or $2.89 billion.

LG expects the launch of the advanced V10 and price-competitive Nexus 5X smartphones in the fourth quarter to improve the overall product mix.

Xiaomi tumbled to fifth place with 5 percent share and its shipment growth rate declined minus 1 percent annually. Both Lenovo-Motorola and Xiaomi are struggling to make headway in the fast-growing 4G smartphone market and they are being punished by a bullish Huawei and a resurgent Samsung.

Image source: Bloomberg

Baburajan K
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