Samsung posts record profits in Q3, boosted by sales of chips and low end phones

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Samsung, as expected from its recent preliminary results filing, made huge profits in the third quarter of the financial in results announced early today. The company’s operating profits rose to 10.16 trillion won (roughly $9.56 billion), up by 7% from Q’s 9.53 trillion won ($8.97 billion). The IT and mobile division is credited with contributing the largest share of the impressive figures as it is said to have brought in about 6.70 trillion won ($6.3 billion) in profits.

The company’s net income rose 25 percent to 8.05 trillion won ($7.6 billion) in Q3.

The mobile unit reported an operating profit of 6.7 trillion won, up from last year’s 5.63 trillion won.

The impressive figures upped by high returns from the mobile division are said to have been boosted by Samsung’s dominance in low end devices where it managed to crush the competition while still sticking its head at the very top keeping the likes of Apple on toes as far as high end smartphones go. Samsung’s wide tablet potfolio is also said to have helped matters since its tablet sales have picked up too. Emerging markets like China, Latin America and Eastern Europe provided Samsung the much needed cushion from slowing sales of flagship devices like the Galaxy S4 in other markets like the North American and European markets which are becoming saturated and where Samsung has had to content with increasing competition.

The chip business also helped boost Samsung’s balance sheet in the wake of slow demand for TVs with the chip division posting an operating profit of  2.06 trillion won, compared with 1.02 trillion won last year. The consumer electronics division (TVs, home appliances etc) managed to rake in 350 billion won which is 50 billion won less than what it brought in last year (400 billion won). Things were not so rosy for the display division, the makers of the famous OLED displays as it posted an operating profit of 980 billion won in the third quarter, compared with the 1.17 trillion won a year earlier.

 

Source: Bloomberg

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