Samsung Expects Record Q3 Profits Of £5.8bn
Semiconductor gains offset smartphone saturation fears as Samsung posts second consecutive quarter of record results
Samsung expects to post record third quarter profits of 10.1 trillion Won (£5.8bn), a year-on-year increase of 25 percent, despite slowing growth in its smartphone business.
The Korean manufacturer is the largest mobile phone producer in the world and its mobile division accounts for two-thirds of the company’s total earnings, but despite the strong performance of the Samsung Galaxy S4, there are fears the market for high-end devices is beginning to saturate.
Samsung warned in its second quarter results that it expected both the smartphone and tablet markets to continue to grow, although at a slower pace. The company is believed to have sold up to 88 million mobile phones during the period, up from 76 million in the second quarter, partly thanks to the success of its mid-range devices in emerging markets.
Samsung profits
Last month, Samsung promised it would soon introduce a handset with a curved, flexible display as it attempts to create more innovative designs.
However, despite the warnings regarding its mobile business, Samsung also said it believed continued demand for mobile devices in general would result in a windfall for its semi-conductor unit. This prophecy that appears to have been fulfilled as Samsung benefited from a supply shortage among its competitors that left it with few genuine rivals.
The company has moved to diversify its product range with the Galaxy Gear smartwatch, which will compete with the Android-based Sony SmartWatch 2 and the much-rumoured, but as-yet unconfirmed, Apple iWatch.
Samsung’s record profits contrast starkly with the results released by HTC. The struggling Taiwanese firm posted its first ever loss earlier this week, despite the critical acclaim that has greeted its flagship HTC One smartphone.
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