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Tue, Oct 23, 2001 - Page 21 News List

Samsung's 3Q profit falls 75 percent

MEMORY CHIPS With prices plummeting to half the cost of production, the world's largest DRAM manufacturer was unable to stem dramatic losses this last quarter

BLOOMBERG , SEOUL

Samsung forecast worldwide sales of mobile phones will increase to about 410 million units next year from 390 million this year.

The company increased profit margins on its mobile phones by introducing improved displays and the ability to access the Internet at higher speeds over existing networks. These "2.5 G" phones sell for an average of 50 percent more than current models, it said.

"Next quarter numbers are going to have to be revised up a little bit based on the very good margins the company has on new products such as the handsets," said Keon Han, an electronics analysts at Bear Stearns Asia, in Hong Kong.

Overall, third-quarter sales fell to 7.2 trillion won from 8.8 trillion won last year. Sales in the second quarter totaled 8.6 trillion won.

The company said net income received a boost from a tax rebate and from earnings from affiliated companies such as Samsung SDI Co.

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