The quarterly operating profit of Samsung Electronics climbed 26 percent to a new record, matching the estimates of the market, driven by a strong recovery in its microprocessor business, while sales of advanced phones growth strongly decreased.
The leading manufacturer of smart phones has recorded a profit record in six of the last seven quarters, but could find difficult to extend his winning streak without a new star, after the not very spectacular launches of its new advanced clock Galaxy Gear and your phone Galaxy Round in recent months.
On Friday, Samsung said that the strength of its microprocessor business will continue in the current quarter, while growth in advanced phones will slow, due to the intensification of competition during the year-end sales season. “Samsung has fared well, after reaching to Apple in the market for advanced phones. But what worries me is if Samsung I irle better,”said the Manager of funds in LS Asset Management Kim Sung-soo.
“Just like Nokia, Samsung would have been a limit on the increase in its market share. Apple has also is defending, what designates a fight uphill for Samsung,”he added.
Samsung shares were unchanged after the announcement of results, against a drop of 0.3 percent in the index of reference.
The South Korean firm planned shipments of advanced phones to grow between 1 percent and 5 percent in the current quarter and expected selling prices to remain unchanged or increase slightly.
Samsung said on Friday that its operating profit between July and September rose to 10.2 billion won (6,960 million euros), in line with its forecast.
The benefit in its microprocessor business doubled to 2.06 trillion won, the highest level in three years, reflecting prices of microchips this year and a more limited offerings from a fire last month in a Chinese plant owned by SK Hynix. The mobile division, the greater benefits of Samsung generator, had a record of 6.7 trillion won benefit since a greater variety of advanced phones cheaper Galaxy elevated volumes of shipments and helped to offset the weakening of growth in the lucrative high level segment.
Samsung shares have risen 10 percent in the past three months, against the advance of 7 per cent of the reference index.
- Samsung to expand devices that work with Gear (kansascity.com)
- Samsung Electronics profit jumps 26% (cyberparse.co.uk)
- Samsung reports record profits, warns of smartphone slowdown (itpro.co.uk)