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My Profile Top News Reuters top ten news stories delivered to your inbox each day. Subscribe You are here: Home > News > Technology > Article Home Business & Finance News U.S. Politics International Technology Internet Entertainment Sports Lifestyle Oddly Enough Health Science Special Coverage Video Pictures Your View The Great Debate Blogs Weather Reader Feedback Do More With Reuters RSS Widgets Mobile Podcasts Newsletters Your View Make Reuters My Homepage Partner Services CareerBuilder Affiliate Network Professional Products Support (Customer Zone) Reuters Media Financial Products About Thomson Reuters Samsung set to beat 2009 handset sales target Sun Nov 29, 2009 11:36pm EST Email | Print | Share | Reprints | Single Page [-] Text [+] SEOUL (Reuters) - Samsung Electronics (005930.KS), the world's No. 2 mobile phone maker, gave an upbeat forecast for 2009 mobile phone sales due to sharp growth in touchscreen models, but surging sales may not guarantee higher margins. Growing competition for market share could put Samsung under pressure to lower prices in the high-margin touchscreen phones, with iPhone's debut in the domestic market last week set to challenge Samsung and home-town rival LG Electronics (066570.KS). "Touch phones taking a bigger portion of handset sales will not likely have a significant impact on profitability because makers eventually have to cut prices to appeal to the wider public," said Hanwha Securities analyst Seo Do-won. "What we have to set sight on is the smartphone market, in which Samsung is still weaker than Apple, RIM and Nokia (NOK1V.HE). Samsung has strengths in high-function and hardware sides, but is weak in software and services compared with rivals," Seo said. Samsung, which trails Finland's Nokia, said on Monday it was on track to exceed its 2009 mobile phone sales target, with touchscreen models enjoying sharp growth. It had previously said it aimed to sell more than 200 million phones this year, after selling slightly less than that figure in 2008. The blockbuster iPhone of Apple (AAPL.O) made its debut in South Korea last week after local regulators cleared the final hurdle for its sales in a market that is home to 47 million mobile phone users. With established strength in premium and feature phones, Samsung and LG have recently boosted their smartphone line-ups to compete with Apple and Blackberry maker Research In Motion (RIM.TO) (RIMM.O). Samsung said its global market share in handsets rose over 20 percent for the first time in the third quarter, with its telecom unit posting a profit margin of 10 percent in the third quarter, unchanged from the second quarter. Research firm Gartner said this month global mobile phone sales this year would be roughly on par with 2008 and grow 5-8 percent next year. TOUCHSCREEN MODELS BOOM Samsung said in a statement handsets adopting full touchscreens would account for about 20 percent of its mobile phone sales this year. In 2008, such phones made up only 5 percent of Samsung's total sales. Samsung had sold around 40 million full touchscreen devices between January and November this year, compared with 10 million in 2008. Feature-packed premium phones and smartphones with intuitive user interfaces have prompted a boom in touchscreen models that allow users to manipulate cellphones more easily. "Samsung will continue to expand the global full touch phone market by introducing phones tailored to individual regions and user requirement with stylish designs, intuitive UIs and cutting edge features," JK Shin, head of Samsung Electronics' Mobile Communications Division, said in the statement. Samsung Mobile Display, Samsung Electronics' mobile screen venture, expects touchscreens to be adopted by about 50 percent of major portable devices -- mobile phones, digital cameras, navigations and digital media players -- sold in 2013. Continued... View article on single page Share: Del.icio.us Digg Mixx Yahoo! Facebook LinkedIn Next Article: UPDATE 2-Samsung set to beat 2009 handset sales target Also On Reuters Blog: Why is Starbucks hiding its iconic logo? Big developing countries form climate change front Slideshow Slideshow: The world's top business hotels More Technology News Barnes & Noble delays Nook shipments to stores Black Friday Web shopping up 11 pct - report Black Friday shoppers tweet, friend and clip Nokia-Siemens CEO says focus on market share: report Activision says "Call of Duty" series tops $3 billion More Technology News... More News UPDATE 2-Samsung set to beat 2009 handset sales target Sunday, 29 Nov 2009 11:31pm EST Acer launches Android phone, says targets on track Thursday, 26 Nov 2009 10:40pm EST Second Sony Ericsson phone has software problem Thursday, 26 Nov 2009 01:58pm EST Motorola's Droid to help Verizon, hurt RIM & Palm Monday, 23 Nov 2009 11:53am EST UPDATE 3-Sony slides to 4-mth low, plan fails to inspire Friday, 20 Nov 2009 04:23am EST Editor's Choice Slideshow A selection of our best photos from the past 24 hours. Slideshow Most Popular on Reuters Articles Video UAE stocks tumble on Dubai woes; Asia rebounds "Dubai model" was the vision of one man Transsexual L.A. Times sportswriter found dead UPDATE 4-US shoppers spent less over Black Friday weekend "Trailblazing" website reveals 350 years of science RPT-GLOBAL MARKETS-Asian shares rebound, watching Dubai Cuba conducts war games with U.S. invasion in mind TOPWRAP 2-UAE stocks tumble on Dubai woes; Asia rebounds Dubai debt woes may hit U.S. property market UPDATE 2-Tiger Woods accepts full blame for car crash Most Popular Articles RSS Feed Video White House gatecrashers on hometurf Honduras goes to polls. Naked anti fur protest Swiss vote on minarets U.S. police killed Dalai Lama speaks on China's future Iran nuclear threat Cargo plane crash in China Bomb caused Russian train crash Honduras economy down. Most Popular Videos RSS Feed Reuters.com: Help and Contact Us | Advertise With Us | Mobile | Newsletters | RSS | Labs | Journalism Handbook | Archive | Site Index | Video Index Thomson Reuters Corporate: Copyright | Disclaimer | Privacy | Professional Products | Professional Products Support | About Thomson Reuters | Careers International Editions: Africa | Arabic | Argentina | Brazil | Canada | China | France | Germany | India | Italy | Japan | Latin America | Mexico | Russia | Spain | United Kingdom | United States Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests. 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