Samsung handset sales rise 19% to 71.4 mln

Samsung handset sales rise 19% to 71.4 mln
(Telecompaper) Samsung Electronics shipped 71.4 million mobile phones in the third quarter, up 12 percent from Q2 and up 19 percent year-on-year. Samsung said it outpetperformed the market on strong sales of its Galaxy and Wave smartphones, with the Galaxy S accumulating shipments over 7 million units and the Wave at more than 2 million. The average selling price rose 14 percent from Q2 to USD 122 per phone. Overal the Telecom division reported revenues of KRW 11.12 trillion, up from KRW 9.57 trillion a year earlier. Operating profit improved to KRW 1.13 trillion from KRW 0.95 trillion. For the fourth quarter, Samsung said it’s targeting a further increase in its market share and operating margin, helped by an enhanced product mix with new smartphones and the Galaxy Tab and mass-market touch devices for emerging markets. Samsung’s total sales in the third quarter were up 12 percent to a record KRW 40.23 trillion, and operating profit rose 15 percent to KRW 4.86 trillion. The net profit came in at KRW 4.46 trillion, also a record, versus KRW 3.81 trillion a year earlier. Samsung attributed the growth to a strong performance in semiconductors and handsets, offsetting weak demand for TVs and PCs and the slow economic recovery. Looking ahead, year-end demand for TVs and mobile handsets is expected to support continued sales growth. However, Samsung expects oversupply in the memory chip market will lead to reduced pricing, while prices for LCD panels will continue to decline. The recent appreciation of the Korean won is also expected to put downward pressure on fourth-quarter earnings. Samsung also announced that total capital expenditure for the year through 30 September reached KRW 15 trillion, representing 83 percent of the total planned outlay of KRW 18.2 trillion for 2010. When including investments in subsidiaries such as Samsung Mobile Display, capex will reach KRW 20 trillion for the year.[Lees verder]

Verizon to pay USD 78 mln to settle ‘mystery charges’
(Telecompaper) Verizon Wireless has agreed to pay USD 25 million to the US Treasury in order to settle a dispute over wrongful billing of its customers. This comes in addition to the USD 52.8 million in reimbursements it will pay to around 15 million customers affected. The mobile operator also will provide targeted information about data usage and tracking to new and existing customers, in both English and Spanish; establish a special internal team to track, identify and address customer data usage complaints; and provide additional training on data charge and credit issues to all of its customer-facing customer care employees. Verizon said most of the mistaken charges resulted from a very small data “acknowledgment” session sent by software pre-loaded on certain phones, such as games. For customers who did not have data plans and who were not otherwise using data features on their devices, this triggered a prepaid charge of USD 1.99. In other cases, the company accidentally charged customers for access to website links that were supposed to be free, such as Verizon’s own portal, or it charged customers trying to connect to data services even if there was insufficient network coverage. The company will make changes to the pre-installed software and websites in an attempt to avoid further problems. The FCC, which has been investigating Verizon since January over the “mystery charges”, said it was an historic agreement.[Lees verder]

Carlyle Group to buy Syniverse for USD 2.6 billion
(Telecompaper) Carlyle Group has agreed another takeover in the telecom sector, to buy Syniverse Technologies for USD 2.6 billion. The private equity firm is offering USD 31 per share cash for Syniverse, a 35 premium on the company’s average share price in the 30 days prior to the announcement. Syniverse provides a full portfolio of mobile roaming, messaging and network equipment to more than 800 mobile, cable and internet providers, and enterprises in over 160 countries. The Syniverse board of directors unanimously approved the transaction, which is subject to regulatory and shareholder approvals. The transaction has fully committed financing, consisting of equity provided by Carlyle Partners V, a US buyout fund, and debt provided by Barclays Capital and Credit Suisse. The deal is expected to close in Q1 2011.[Lees verder]

Motorola returns to revenue growth in Q3
(Telecompaper) Motorola reported its first sales growth since 2006 in the third quarter, growing revenues 6 percent year-on-year to USD 5.8 billion. Excluding the operations to be sold to Nokia Siemens Networks, sales rose 13 percent to USD 4.9 billion. EPS, excluding the discontinued operations, increased to USD 0.05 from USD 0.01 a year ago. Motorola generated positive operating cash flow from continuing operations of USD 502 million and ended the quarter with a total cash position of USD 9.0 billion. The Mobile Devices division moved to an operating profit of USD 3 million when excluding one-time items, versus a loss of USD 183 million a year ago. Revenues rose 20 percent year-on-year to USD 2.0 billion. Smartphone shipments reached 3.8 million, after 22 devices launched this year. The Home segment sales rose 5 percent to USD 912 million, and adjusted operating profit increased to USD 77 million from USD 43 million a year earlier. Enterprise Mobility Solutions sales, which now include the iDen infrastructure business, were USD 1.9 billion, up 9 percent compared with the year-ago quarter. Operating profit at the unit rose to USD 321 million from USD 303 million. Motorola forecast fourth-quarter earnings from continuing operations of USD 0.14-0.16 per share.[Lees verder]

LG Mobile posts Q3 sales down 30%
(Telecompaper) LG Electronics reported a 30 percent decline in third-quarter revenues from its mobile communications division, as the Korean company fell behind in the smartphone market. Mobile revenues dropped to KRW 3.224 trillion from KRW 4.627 trillion a year earlier, with handset sales down 31.9 percent to KRW 2.971 trillion. LG shipped 28.4 million phones in the quarter, down 10 percent year-on-year and down 7 percent from Q2. Mobile sales were up 17 percent sequentially in its home market Korea thanks to the new Optimus Q and rose 9 percent quarter-on-quarter in Latin America, but the company saw shipments decline in Europe and North America. The operating result at the mobile division moved to a loss of KRW 326 billion from a profit of KRW 469 million a year earlier, due to the weaker shipments and lower ASPs. LG predicted a better Q4 with the expansion of the Optimus One and new Windows phones, as well as seasonal effects. Market shipments are forecast up 17 percent from Q3 to around 307 million units, with LG’s own sales up in the high single digits. LG said it will continue to target the mass market with basic touch and qwerty devices, while investing to regain a position in the premium market in 2011. LG Electronics reported total quarterly sales of KRW 13.43 trillion, down 2.1 percent from a year earlier, and net profit plunged to KRW 8 billion from KRW 911 billion, with operating profits falling in all its divisions.[Lees verder]

Huawei, Option partner for mobile broadband products
(Telecompaper) Huawei Technologies and mobile technology company Option have signed a cooperation agreement for mobile broadband products. The companies have agreed to work on joint R&D projects. Both companies are also exploring the establishment of a joint R&D centre in Belgium, and ways of contributing resources to develop mobile broadband services and software. Through this collaboration, the two parties aim to support the achievement of Europe’s Digital Agenda objectives. Huawei has agreed to licence Option’s connection manager software, for which the first year of the licence is valued at EUR 27 million. The agreement also includes the option for an extension of the licence for an amount of up to EUR 33 million over the next eighteen months. In addition, both companies have agreed that Huawei is going to acquire Option’s wholly-owned semiconductor company M4S for approximately EUR 8 million. M4S is developing an enhanced radio frequency chipset to be used in 4G devices. Option has also withdrawn its anti-dumping and anti-subsidy complaints against imports of wireless WAN modems from China, asked the Belgian government to withdraw its safeguard request and asked the European Commission to close all three investigations.[Lees verder]

Samsung handset sales rise 19% to 71.4 mln
(Telecompaper) Samsung Electronics shipped 71.4 million mobile phones in the third quarter, up 12 percent from Q2 and up 19 percent year-on-year. Samsung said it outpetperformed the market on strong sales of its Galaxy and Wave smartphones, with the Galaxy S accumulating shipments over 7 million units and the Wave at more than 2 million. The average selling price rose 14 percent from Q2 to USD 122 per phone. Overal the Telecom division reported revenues of KRW 11.12 trillion, up from KRW 9.57 trillion a year earlier. Operating profit improved to KRW 1.13 trillion from KRW 0.95 trillion. For the fourth quarter, Samsung said it’s targeting a further increase in its market share and operating margin, helped by an enhanced product mix with new smartphones and the Galaxy Tab and mass-market touch devices for emerging markets. Samsung’s total sales in the third quarter were up 12 percent to a record KRW 40.23 trillion, and operating profit rose 15 percent to KRW 4.86 trillion. The net profit came in at KRW 4.46 trillion, also a record, versus KRW 3.81 trillion a year earlier. Samsung attributed the growth to a strong performance in semiconductors and handsets, offsetting weak demand for TVs and PCs and the slow economic recovery. Looking ahead, year-end demand for TVs and mobile handsets is expected to support continued sales growth. However, Samsung expects oversupply in the memory chip market will lead to reduced pricing, while prices for LCD panels will continue to decline. The recent appreciation of the Korean won is also expected to put downward pressure on fourth-quarter earnings. Samsung also announced that total capital expenditure for the year through 30 September reached KRW 15 trillion, representing 83 percent of the total planned outlay of KRW 18.2 trillion for 2010. When including investments in subsidiaries such as Samsung Mobile Display, capex will reach KRW 20 trillion for the year.[Lees verder]

Verizon to pay USD 78 mln to settle ‘mystery charges’
(Telecompaper) Verizon Wireless has agreed to pay USD 25 million to the US Treasury in order to settle a dispute over wrongful billing of its customers. This comes in addition to the USD 52.8 million in reimbursements it will pay to around 15 million customers affected. The mobile operator also will provide targeted information about data usage and tracking to new and existing customers, in both English and Spanish; establish a special internal team to track, identify and address customer data usage complaints; and provide additional training on data charge and credit issues to all of its customer-facing customer care employees. Verizon said most of the mistaken charges resulted from a very small data “acknowledgment” session sent by software pre-loaded on certain phones, such as games. For customers who did not have data plans and who were not otherwise using data features on their devices, this triggered a prepaid charge of USD 1.99. In other cases, the company accidentally charged customers for access to website links that were supposed to be free, such as Verizon’s own portal, or it charged customers trying to connect to data services even if there was insufficient network coverage. The company will make changes to the pre-installed software and websites in an attempt to avoid further problems. The FCC, which has been investigating Verizon since January over the “mystery charges”, said it was an historic agreement.[Lees verder]

Carlyle Group to buy Syniverse for USD 2.6 billion
(Telecompaper) Carlyle Group has agreed another takeover in the telecom sector, to buy Syniverse Technologies for USD 2.6 billion. The private equity firm is offering USD 31 per share cash for Syniverse, a 35 premium on the company’s average share price in the 30 days prior to the announcement. Syniverse provides a full portfolio of mobile roaming, messaging and network equipment to more than 800 mobile, cable and internet providers, and enterprises in over 160 countries. The Syniverse board of directors unanimously approved the transaction, which is subject to regulatory and shareholder approvals. The transaction has fully committed financing, consisting of equity provided by Carlyle Partners V, a US buyout fund, and debt provided by Barclays Capital and Credit Suisse. The deal is expected to close in Q1 2011.[Lees verder]

Motorola returns to revenue growth in Q3
(Telecompaper) Motorola reported its first sales growth since 2006 in the third quarter, growing revenues 6 percent year-on-year to USD 5.8 billion. Excluding the operations to be sold to Nokia Siemens Networks, sales rose 13 percent to USD 4.9 billion. EPS, excluding the discontinued operations, increased to USD 0.05 from USD 0.01 a year ago. Motorola generated positive operating cash flow from continuing operations of USD 502 million and ended the quarter with a total cash position of USD 9.0 billion. The Mobile Devices division moved to an operating profit of USD 3 million when excluding one-time items, versus a loss of USD 183 million a year ago. Revenues rose 20 percent year-on-year to USD 2.0 billion. Smartphone shipments reached 3.8 million, after 22 devices launched this year. The Home segment sales rose 5 percent to USD 912 million, and adjusted operating profit increased to USD 77 million from USD 43 million a year earlier. Enterprise Mobility Solutions sales, which now include the iDen infrastructure business, were USD 1.9 billion, up 9 percent compared with the year-ago quarter. Operating profit at the unit rose to USD 321 million from USD 303 million. Motorola forecast fourth-quarter earnings from continuing operations of USD 0.14-0.16 per share.[Lees verder]

LG Mobile posts Q3 sales down 30%
(Telecompaper) LG Electronics reported a 30 percent decline in third-quarter revenues from its mobile communications division, as the Korean company fell behind in the smartphone market. Mobile revenues dropped to KRW 3.224 trillion from KRW 4.627 trillion a year earlier, with handset sales down 31.9 percent to KRW 2.971 trillion. LG shipped 28.4 million phones in the quarter, down 10 percent year-on-year and down 7 percent from Q2. Mobile sales were up 17 percent sequentially in its home market Korea thanks to the new Optimus Q and rose 9 percent quarter-on-quarter in Latin America, but the company saw shipments decline in Europe and North America. The operating result at the mobile division moved to a loss of KRW 326 billion from a profit of KRW 469 million a year earlier, due to the weaker shipments and lower ASPs. LG predicted a better Q4 with the expansion of the Optimus One and new Windows phones, as well as seasonal effects. Market shipments are forecast up 17 percent from Q3 to around 307 million units, with LG’s own sales up in the high single digits. LG said it will continue to target the mass market with basic touch and qwerty devices, while investing to regain a position in the premium market in 2011. LG Electronics reported total quarterly sales of KRW 13.43 trillion, down 2.1 percent from a year earlier, and net profit plunged to KRW 8 billion from KRW 911 billion, with operating profits falling in all its divisions.[Lees verder]

Huawei, Option partner for mobile broadband products
(Telecompaper) Huawei Technologies and mobile technology company Option have signed a cooperation agreement for mobile broadband products. The companies have agreed to work on joint R&D projects. Both companies are also exploring the establishment of a joint R&D centre in Belgium, and ways of contributing resources to develop mobile broadband services and software. Through this collaboration, the two parties aim to support the achievement of Europe’s Digital Agenda objectives. Huawei has agreed to licence Option’s connection manager software, for which the first year of the licence is valued at EUR 27 million. The agreement also includes the option for an extension of the licence for an amount of up to EUR 33 million over the next eighteen months. In addition, both companies have agreed that Huawei is going to acquire Option’s wholly-owned semiconductor company M4S for approximately EUR 8 million. M4S is developing an enhanced radio frequency chipset to be used in 4G devices. Option has also withdrawn its anti-dumping and anti-subsidy complaints against imports of wireless WAN modems from China, asked the Belgian government to withdraw its safeguard request and asked the European Commission to close all three investigations.[Lees verder]