Samsung Electronics posts better-than-expected operating profit in Q3

Samsung Electronics posts better-than-expected operating profit in Q3

Samsung announced on Friday that its third-quarter operating profits would be about 7.7 trillion won ($6.49 billion) - a 56% fall from 17.57 trillion won in the same quarter past year.

Samsung's full earnings report will offer us a chance to take a closer look at various different parts of the company, though.

Samsung reported gross sales of round 62 trillion Korean gained (£42bn) for the three months to the end of September, down round 5pc one year on one year.

The plunge is also another troubling indication Samsung Electronics hasn't overcome its massive loss of market share in China and its insistence on developing pricier phones in a market now leaning towards cheaper models such as those produced by Chinese competitors, Xiaomi and Oppo.

"The IT and Mobile Communications division of Samsung performed better than in the second quarter as high-end smartphones, including Galaxy Note 10 launched in August, are selling well", an industry insider told Asia Times.

South Korean manufacturing giant, Samsung, officially confirmed that it is expecting a 56% YoY decline in its operating profit.

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The situation was made worse by U.S. sanctions against China's Huawei Technologies, a major purchaser of Samsung's chips.

Samsung is the world's biggest maker of semiconductors and smartphones, but it has struggled with falling prices for DRAM and NAND memory chips since late a year ago.

"The display business also improved as high-resolution Organic Light-Emitting Diodes (OLED) display orders from Apple for the new iPhone increased", the source added.

Regarding Samsung's plan to acquire a fabless company to expand its system-on-chip business this year, Kim said it "is still ongoing and various measures are being considered".

The estimates for the third quarter showed a slight rise from the April to June period, which analysts attributed mainly to improvements in the mobile business. As CNBC noted, if Samsung's forecast is correct, then this will be the third consecutive quarter where its operating profit is halved from the same period a year ago. But it appears now that both of these key markets for Samsung are stabilizing.

Samsung will provide more details about its various businesses when it releases its final figures later this month.

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