Samsung Q3 earnings rise 26% to a new record, in part from stronger smartphone sales

Samsung Q3 earnings rise 26% to a new record, in part from stronger smartphone sales
Korean OEM Samsung reported third quarter earnings on Friday and the tech giant announced that for the period, net profit rose 26% to a record high. During the three months, analysts estimate that Samsung sold between 85 million and 89 million smartphones, but with lower end phones making up a larger number of the total units sold, profit margins were down. Samsung's Investor Relations head Robert Yi said that in the current quarter, Samsung is facing tough pricing issues in the premium smartphone market, which could put a damper on the next earnings report. And wearables, led by the new Samsung Galaxy Gear smartwatch, is too much of a niche market at the moment to contribute to earnings.

For the quarter, the company earned a record 8.24 trillion won ($7.76 billion USD) vs. the previous year's 6.56 trillion won ($6.2 billion USD). Revenue rose 13.2% to 59 trillion won ($55.5 billion USD). The previous record for net profit was the 7.77 trillion yen ($7.24 billion USD) scored by Samsung in the second quarter. Growth in operating profit dropped by nearly half sequentially from 47.5% in the second quarter to 26% in the third quarter. While profit in the mobile sector slowed, it still made up 66% of Samsung's operating profits.

Samsung has 50 trillion won ($47 billion USD) in cash, some of which it is using for acquisitions. Like Apple with its $147 billion cash hoard, Samsung is going to have to decide what to do with its pile of money.

source: WSJ

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28 Comments

1. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Holy mother of God that's a lot of money.

5. AwesomestMaximuss

Posts: 148; Member since: Jul 09, 2013

And thats just the mobile department of Samsung..

15. Napalm_3nema

Posts: 2236; Member since: Jun 14, 2013

That's all of Samsung Electronics. The mobile division's growth was minor, but still strong profits. The semiconductor arm doubled their business.

10. HouTexan

Posts: 461; Member since: Jan 08, 2012

Lmao Yup

13. SAYED-EJAZ

Posts: 225; Member since: Oct 10, 2013

Samsung Rocks , love samsung !

2. kryme

Posts: 469; Member since: Oct 24, 2013

and yall think samsung is doing something bad?????

4. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Obviously they're doing something right if they earned that much in one quarter. Haters are always going to hate.

7. kryme

Posts: 469; Member since: Oct 24, 2013

so tru....

3. gigaraga

Posts: 1454; Member since: Mar 29, 2013

Go Samsung!~ Probably richer than all the other 'Android' phone makers. They don't stand a chance.

6. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Samsung's earnings = HTC's, Sony's, Motorola's, and LG's earnings combined

17. wicpromd

Posts: 266; Member since: Aug 20, 2013

Including 'Nokia' too How can someone forget one of the biggest 'Loser' Brand :D

8. HouTexan

Posts: 461; Member since: Jan 08, 2012

The other OEM's aren't even close

14. SAYED-EJAZ

Posts: 225; Member since: Oct 10, 2013

Other OEMs can only withstand and see samsungs power ..!

9. YouGotTrolledSon

Posts: 41; Member since: Nov 25, 2012

Now you stfu Samsung haters?

11. PapaSmurf

Posts: 10457; Member since: May 14, 2012

Nope. They'll find ways to 'prove' that Samsung is the worst and they 'copy' every OEM.

19. kostas12ldb

Posts: 51; Member since: Feb 18, 2013

The fact that they copy other OEMs might be true, but they sure do a GOOD JOB! Results are excellent.

12. GeekMovement unregistered

Loving my Note II.

27. Razrman

Posts: 100; Member since: Dec 05, 2011

Same here.

16. wicpromd

Posts: 266; Member since: Aug 20, 2013

Samsung FTW Combine Nokia , sony ,htc ,lg or whatever still Samsung rules.......

18. kostas12ldb

Posts: 51; Member since: Feb 18, 2013

OK! Profits are good and all! Now GIVE US the freakin 4.3 for our Note 2, which still runs the ancient 4.1.2!!!!!!!!!!! The phone was a flagship 11 months ago, and most ppl bought it for more than 700 euro, remember!!!!!!

21. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

Hope their 4.3 for note 2 would have the same feature set as note 3. I would be watching as i own both.

22. kostas12ldb

Posts: 51; Member since: Feb 18, 2013

I dont think they'll do that, just to give you one more reason to upgrade from N2 to N3. :) That's the usual strategy (for all OEMs).

25. kabhijeet.16

Posts: 892; Member since: Dec 05, 2012

They provided Android 4.1.2 to Galaxy SII (2011 device). May be they will skip 4.3 and directly give 4.4 updates. They did this in the past with Galaxy Advance and some other handsets and tablets.

20. Tsepz_GP

Posts: 1176; Member since: Apr 12, 2012

Another very hard pill to swallow for the haters! Great work by Samsung :)

23. ifti313

Posts: 16; Member since: Jun 08, 2013

time to get healous htc n others ;) :P

24. ifti313

Posts: 16; Member since: Jun 08, 2013

jealous*

26. rusticguy

Posts: 2828; Member since: Aug 11, 2012

Apple's legal team gets busy now :)

28. freebee269

Posts: 542; Member since: Aug 10, 2012

i have 2 samsung 1080p led tv's, so i contributed to their profit earnings. samsung tv's are my favorite. i also like their players like bluray and dvd.

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