Samsung handset shipments and profit up in first quarter

Samsung Electronics Co. Ltd. said it shipped nearly 35 million handsets in the first quarter, posting telecom division profits-largely derived from handset sales-of $646 million. Both numbers were up nearly 30 percent over the year-ago quarter. Handset-related revenue, however, at $4.6 billion, was down 2 percent over the year-ago quarter.
The company’s handset division was something of a bright spot, set against an overall decline in profits due to flagging sales in Samsung’s semiconductor business, which is the company’s largest division.
The company cited sales of its Ultra Edition handsets and new products in China and other emerging markets for its cellphone gains.
It was unclear how Samsung’s handset-shipment calculations were affected by the company’s announced change in shipment calculations from “headquarters shipment-based” to “global sales-based.”
Analyst Ittai Kidron of CIBC World Markets said in a note to investors that the shipment numbers were stronger than expected. Samsung, Kidron said, is focused on next-generation products, staking out a leadership position in HSDPA and WiBRO/WiMAX.