Samsung broke the 20% barrier of handset market share
During the third quarter, two of five mobile phones in the world were made by Samsung Electronics. Samsung Electronics, the world’s second-largest mobile phone maker, announced that its mobile phone sold 60.2 million units during the third quarter, and estimated that it has secured 21% of market share.
Despite reverse growth of global mobile phone market in Q3, Samsung has enjoyed sales growth not only in the advanced countries of North America and Europe, but also in emerging markets such as China and India, the company said. Samsung maintained a two-digit operating margin with around 10%, however the average sale price (ASP) dropped to US$120, down from $124 in the previous quarter.
Samsung sees a bright fourth quarter in the global handset market, with 7% growth over the third quarter due to seasonal effect such as Christmas and market expansion in China. The company expects to sell 64 million mobile phones in Q4, setting a quarterly sales record.
Meanwhile, among top five mobile phone makers in the world, Sony Ericsson and Motorola went into the red in Q3, Nokia and Samsung recorded a two-digit operating margin (11.4% and 10% respectively), and LG recorded an 8.4% operating margin. In terms of market share, Nokia maintained its No.1 position with 38% followed by Samsung with 21% and LG with 11%.
Motorola recorded 4.7% of market share with 13.6 million handset shipments in the third quarter; however, the company’s new smartphone line-up based on Android platform is expected to improve its market position, especially in North America. If company expectations are correct, LG would be a scapegoat for Motorola’s comeback. Lagging far behind the smartphone sector is considered the most vulnerable point of LG.
Samsung expects to see 10 million smartphone sales this year, and more next year. The company plans to increase its smartphone line-up from 20 to over 40 models next year.

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