Samsung posts record profits as Galaxy sales crush Apple
Mobile biz powers 91% boost to Q3 bottom line
Booming mobile sales have powered record profits at Samsung in Q3. Samsung published a preliminary statement of their financials yesterday [PDF] which shows a 91 per cent increase in net profit compared to the same three months last year.
The South Korean firm drew in 6.56 trillion won profit ($5.9bn or £3.7bn) in the three months to the end of October, compared to 3.44 trillion won ($3.1bn or £1.9bn) for the same period in 2011.
And with general consumer electronics sales flat at 2 per cent growth, and LCD and memory sales down, it was mobile - and to an extent display panels - that were surging and pulled the whole company with them.
It comes just after news that Samsung's handsets had outsold Apple's by two to one.
Samsung clocked a stunning 82 per cent year on year increase in sales in the highly competitive mobile market. Sales were up 28 per cent sequentially from Q2. The 26.25 trillion won ($23.9 billion, £14.8 billion) brought in by the mobile sector was 50 per cent of Samsung's total 52.18 trillion won ($47.6bn, £29.5bn) revenues for the quarter.
Samsung execs noted the global expansion of the Samsung Galaxy SII as the key Samsung strength in the mobile market and reinforced line-ups at the mid/low levels.
Weak demand for PCs, air-conditioning units and TVs in the developed world put a lag on other areas of the business.
Samsung's profit margin for the quarter sits at 12.6 per cent - less than Apple's 25 per cent - but still very healthy. And of course, it also outshone Apple year-on-year Q3 profit increase of 21 per cent, which was below market-watchers' estimates.
The Sammie execs predicted that Q4 Christmas season would fuel a rise in sales of TVs, tablets and phones, though did warn that competition in the smartphone market was intensifying. ®
Samsung's Q3 2012 preliminary results [PDF]