In Q1 2008 Samsung shipped 46.3 million mobile handsets 1Q 2008.Sales of Samsung Telecommunications were 6.65 trillion KRW for the same quarter and it represents 32% sales of Samsung Electronics.
The growth is mostly explained by continuous growth of emerging markets while there is weak demand in developed markets. During 2007 amount of shipped units was growing constantly: 1Q 2007 – 34.8, 2Q 2007 – 37.4, 3Q 2007- 42.6, 4Q 2007 – 46.3. In 2007 profit was 23,8 trillion KRW, while net profit reached level of 2.7 trillion KRW.
In 1977 Samsung Electronics launched the Telecommunication Network business, and in 1983 it initiated its mobile telecommunications business with the hope that this would become the company’s future growth engine. In 1986, Samsung was able to release its first built-in car phone, the SC-100, but it was a failure due to the poor quality. In spite of unsuccessful result Ki Tae Lee, the then-head of the Wireless Development Team, decided to stay in the mobile business. He asked the company to buy ten Motorola mobile phones for benchmarking.
After 2 years of R&D Samsung developed its first mobile phone (or “hand phone” in Korea), the SH-100 in 1988. It was the first mobile phone to be designed and manufactured in Korea. But the perception of mobile devices was very low and although Samsung introduced new models every year, each model sold only one or two thousand units.Samsung Telecommunications is one of five business units within Samsung Electronics, belonging to the Samsung Group, and consists of the Mobile Communications Division, Telecommunication Systems Division, Computer Division, MP3 Business Team, Mobile Solution Centre and Telecommunication R&D Centre.
Telecommunication Business produces a full spectrum of products from mobiles and other mobile devices such as MP3 players and laptop computers to telecommunication network infrastructure. Headquarters is located in Suwon, South Korea.In 2007 Samsung Telecommunication Business reported over 40% growth and became the second largest mobile device manufacturer in the world.Its market share was 14% in Q4 2007, growing up form 11.3% in Q4 2006.
In Q1 2008 Samsung strengthened its second position on the market and achieved 15.6% world handset market share.