Samsung Electronics reported third-quarter earnings that show sharp declines year after year due to the slow continuous performance of the global memory chip market, which had been the company's biggest profit driver. However, in other areas, Samsung is doing quite well.
Overall, the company earned 62 trillion won (~ $ 53 billion) in revenue and 7.78 trillion won (~ $ 6.71 billion) in operating profit, year-on-year falls of 5 and 56 percent respectively. But only the mobile business posted revenues of 29.25 billion won (~ $ 25 billion), an increase of 17 percent, with a profit increase of 32 percent to 2.92 billion won (~ $ 2 , 5 billion). Profits also increased slightly in the display panel business.
Samsung says that the improved profits of mobile devices were due to strong sales of Galaxy Note 10 and A-series phones, as well as achieving better margins on more mass-market devices. . Samsung does not break down the individual sales figures, but specifically says that the Note 10 is selling better than the 9. The display business had good results when selling small and medium OLED panels, offsetting a weaker performance on screens the size of a TV; Samsung's own TV business recorded a decrease in year-on-year earnings.
In 2020, Samsung expects 5G and foldable phones to contribute even more to its results. However, until the demand for memory increases, and it is far from certain that it will, it is unlikely that the days the company routinely publishes record profits every quarter.