Samsung Q3 financial report reveals profit jump

Oct 24, 2013
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Following Microsoft's latest quarterly numbers posted earlier this evening, Samsung has revealed its own latest financial results. Not surprisingly, the Korean company saw increased profits, making this another solid quarter in what has been a generally strong line of reports. This comes at a time when some of the company's big products have failed to catch as much attention as anticipated, however, and competition has stepped up its game.

According to the latest numbers, Samsung saw its operating profits from July to September increase by about $9.56 billion (10.16 trillion won), a jump of 7-percent from the previous quarter's $8.97 billion (9.53 trillion won). The IT and mobile division was responsible for the largest revenues, bringing in about $6.3 billion in profits (6.70 trillion won).

Such a boost comes from the company pushing out large quantities of lower-end Android Galaxy mobile devices rather than raking in the profits on higher-end offerings. Beyond this, the company also saw its biggest growth for the quarter come from a different area: its chip manufacturing business, with NAND chips and DRAM in particular. In this area, Samsung brought in $2.45 billion in revenue (2.06 trillion won).

This represents a doubling of it year-on-year numbers, and is the highest the Korean company has scored in this area in the past three years. It is anticipated these shipments will remain strong and that demand will increase due to the upcoming holiday season. The question now remains: what will the company do to retain its strong market hold in light of increased competition in the market?

Said LS Asset Management fund manager Kim Sung-soo to the folks at Reuters: "Samsung has done well, having rapidly caught up with Apple in the smartphone market. But I'm concerned whether Samsung would be able to do better. Like Nokia, Samsung may hit a limit in increasing market share. Apple is also fighting back, signaling an uphill battle for Samsung. Samsung needs to show its new growth engines to revive momentum in its stock price."

VIA: Android Community


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