Samsung’s third quarter results showed mobile is going strong for the Korean manufacturer.
Its record third quarter, which saw it net 52.2 trillion won ( £30.4 billion) in total revenues, up 26% year on year, and 6.5 trillion won ( £3.7 billion) in net profit, was driven by increased sales of handheld devices and demand for display panels, the company said.
This demand for mobile saw its mobile communications business post 26.3 trillion won ( £15.3 billion) in revenue, more than half of Samsung’s total revenue and up 82% on the same quarter a year ago, the company said, and
The company’s flagship, the Galaxy SIII, had been one of the key drivers in raising profit margins, as well as the company’s range of device offerings address both high and low ends of the market. Orders for the Galaxy Tab range of tablets was strong, as well as the Note 10.1, the company said.
Samsung senior vice president and head of investor relations Robert Yi said the company had continued to break its quarterly profit records, despite a difficult business environment. While he expected market competition to intensify, Mr Yi said the company would it its best to sustain earnings momentum through the fourth quarter by implementing developed strategies.
Displays
Increased shipments of Samsung’s OLED and liquid crystal display panels used in tablets, smartphones and televisions also drove profitability up, the company said.
The company’s components business and end-product units saw sales increase compared with the same quarter last year, it said. Digital media and communications, made up of the consumer electronics and IT and mobile communications sectors posted 41.90 trillion ( £24.5 billion) won in sales, up 41% year on year.
Device solutions operating profits were 2.29 trillion won ( £1.3 billion) on 17.4 trillion won revenue, with the display segment outperforming the semiconductor business in year on year revenue growth, Samsung said.
Looking ahead, the company said it expected end of year seasonal sales to push up demand for mobile devices, including tablet PCs, as new products were released with more competitive pricing.
