Samsung Q3 Results show some increase in revenue, mobile profits down
We're now in Q4 which means big names, brands, and OEMs are prepping to release their financial reports. Sales and profits are being analyzed now to see if the past quarter has been a success after all the efforts made and products launched. As for Samsung, it needs to watch its numbers closely if it wants to remain on top of the game. You see, Huawei has been moving fast, overtaking old tech giants with products that are affordable yet ready with premium specs.
The latest numbers show Samsung has seen some growth of 20.9 percent with KRW 17.57 trillion as quarterly operating profit. That is an improvement, mainly thanks to the Memory Business line. OLED panels are also doing well even if won (KRW) is wear against the US dollar.
Smartphone sales may be slowing down but the memory chip business is expanding. This makes sense as more OEMs are also working on improving their business and Samsung's semiconductor line delivers several components even for competitors and rivals.
Year-on-Year and Quarter-on-Quarter earnings are higher for the Semiconductor Business but should slow down in Q4. NAND and DRAM are still popular as the company continues to produce those chips to more smartphones. Growth was also seen on the Display Panel Business.
When it comes to mobile revenues and profits, Samsung saw a decline even if flagship sales were solid in the past quarter. The flat shipments were because of low sales of mid-range to low-end phones. The IT & Mobile Communications (IM) Division saw lower earnings and sales of those mid to budget-friendly devices.
Profit overall of the mobile division went down QoQ mainly because of the increase in promo budget and less than ideal currency impact. Marketing didn't help the company either.
Hopefully, the South Korean tech giant will see better earnings by Q4 especially since it's the holiday season. The new Galaxy A7 and A9 as enhanced mid-range phones may help pull up the numbers.
In 2019, we can expect the numbers will change because Samsung will roll out the Galaxy X foldable phone, 5G-capable smartphones, and enhanced Bixby AI and IoT products and services. Samsung is also expected to be a frontliner in the 5G technology business as the company is set to deliver 5G equipment to different OEMs and countries all over the world beginning this quarter. This move will then improve the Networks Business and eventually add to the total revenue.
SOURCE: Samsung
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