To: Eric L who wrote (3867 ) 4/14/2006 2:40:26 PM From: Eric L Respond to Samsung Q1 Handsets ...sec.co.kr Q1 2006 Handset Sell-In as Reported by Vendors Q1 2006 Handset Sell-in and Share and YoY Gain/Loss Samsung 24.5m 14.2% | 29.0m 13.6% ¦ +4.5M +18% Q1 2006 Handset Sell-in and Share and QoQ Sequential Gain/Loss Samsung 27.2m 11.1% ¦ 29.0m 13.6% ¦ +1.8m +7% As estimated by Strategy Analytics My estimate. Current Q1 sell-in estimates range from 205m to 215m Q1 2006 Key Handset Metrics Sales ASP Revenue Operating From the Samsung Q1 Slides • Handset shipment of 29mn units (+7% QoQ, +19% YoY)Samsung Handset Shipment Mix by World Region ASP decrease in both domestic and overseas market Telecoms Division Margin Increased QoQ but Decreased YoY Networks revenue decline due to the sluggishness of CDMA market Samsung's Global Business Outlook Samsung's Q2 Business Outlook From the Samsung Conference Call Samsung Product Mix In Q1 Handset Production Capability Press Comments on Samsung Q1 [Samsung] on Friday announced first-quarter sales of W13.96 trillion (US $13 billion), operating profit of W1.61 trillion and net income of W1.88 trillion. That was a drop in sales of 10 percent from the previous quarter, a decline in operating profit of 24 percent and a fall in net profits of 27 percent. On average, 17 local securities firms had predicted the company would record sales of W15.19 trillion, operating profit of 2 trillion and net income of W1.98 trillion. Samsung Electronics performed poorly in all its business areas, from the flagship semiconductor, LCD and cell phone sectors to digital media and home appliances. ... The IT division sold a record 29 million cell phones in the first quarter, the highest-ever quarterly figure. But due to a price drop it was barely able to stay above the 10 percent mark in the operating income over revenue ratio, recording W4.59 trillion in sales and W460 billion in operating profit. The IT division sold a record 29 million cell phones in the first quarter, the highest-ever quarterly figure. But due to a price drop it was barely able to stay above the 10 percent mark in the operating income over revenue ratio, recording W4.59 trillion in sales and W460 billion in operating profit. - chosun.com -tinyurl.com Profit from telecommunications at Samsung, the world's third-largest mobile-phone maker, fell 45 percent to 460 billion won from a year earlier as surging demand for cheaper handsets from China and India drove down prices. The division was expected to post net income of 512 billion won, according to the Bloomberg survey of analysts. Average prices of Samsung's mobile-phone exports fell to $171 in the first quarter from $182 a year earlier. Samsung fell further behind bigger rivals last year after failing to keep up with Nokia and Motorola in boosting production of entry-level phones. It was also a step behind Motorola, maker of the half- inch-thick Razr phone, in introducing slim-design models. Still, the company joined Nokia and Sony Ericsson Mobile Communications Ltd. in raising industry shipment predictions for the year. Samsung said global handset shipments will rise 13 percent to 910 million units, compared with an earlier forecast for 860 million. - Bloomberg -tinyurl.com Samsung Electronics posted its lowest operating profit in five quarters in the first three months of this year, hit by falling prices of flash memory and LCD display panels. Its operating profit dropped 24 percent from the previous quarter to 1.61 trillion won, the lowest since the fourth quarter of 2004. Its sales fell 10 percent to 13.96 trillion won, from 15.52 trillion won the previous quarter. Net profit also dropped 27 percent to 1.88 trillion won. A stronger won against the dollar cut its profits by about 200 billion won, according to the company. It expects to suffer from the worsening market conditions in the second quarter as well. Not a single department of its five business divisions has seen improved profits this year. ... Chu Woo-sik, VP of Samsung’s IR, said "We believe there will be a turning point at a certain time of the second quarter. But still, we cannot say that the second quarter’s profit would improve from that of the first quarter." Chu also blamed on the Korean won’s gain on the dollar for the disappointing earnings. We estimate that when the Korean currency gains 100 won against the dollar, that becomes a 2-trillion-won loss for us," he said. The mobile phone sector reported that it sold 29 million mobile phone units during the period, up by 7 percent from the previous quarter. However, the average price of the handsets fell from $184 to $171, dragging down the revenue in the sector by 6 percent. - Korea Times -tinyurl.com Upcoming Q1 Handset and Wireless Semiconductor IC Reporting • Motorola Tuesday April 18
