Samsung posts another record-breaking quarter, announces change in leadership

Samsung posts another record-breaking quarter, announces change in leadership

Samsung Electronics has been having a hell of a year, mostly in the good sense of the word. Sure, its vice chairman and heir apparent was sentenced to five years in prison in a massive corruption scandal which also resulted in the impeachment of Korea's president, but hey — it also made a ton of cash.

And if the company's record second quarter operating income of $12.7 billion wasn't impressive enough on its own, its Q3 2017 profits have actually managed to surpass that number, though the difference is a relatively slim $200 million.

But while this is great news for the Korean giant as a whole, a closer look at the numbers reveals that this quarter has actually seen a decrease in profit for its mobile division compared to the last quarter. Samsung's official explanation for this phenomenon is users' increased preference for cheaper ("mass-market") devices, which have a lower profit margin. Or in other words, $900+ devices like the Galaxy Note 8 are tougher to sell, regardless of how good they actually are.

The real money this quarter lied in Samsung's memory and chips businesses — which were the culprits in the second quarter's record profits as well. Interestingly, the display panel business saw a decline in revenue, despite Samsung being the sole supplier of OLED displays for the iPhone X. Then again, this may be a result of Apple's alleged supply bottlenecks for the device; once those are fixed Samsung's display division could be on the rise again.

And in related news, Samsung Electronics recently announced a reshuffling in its top brass, which saw the heads of the three key divisions in the company replaced. Perhaps the most interesting change comes in the IT & Mobile Communications division, whose new leader is DJ Koh, the past head of the company's mobile communications business.

You'll probably recognize Koh as the bespectacled presenter in Samsung's flagship smartphone launch events, but we imagine this is about to change, since the IM division he will be heading is separate from the Consumer Electronics business. Yes, Samsung's internal structure is extremely complicated.

source: Samsung (1, 2) via Engadget

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44 Comments

1. toukale

Posts: 599; Member since: Jun 10, 2015

It's been the chips and screen that's been bringing home the bacon for them a while now, not their mobile devices. It's been this way for the past 18 month.

2. You_Dont_Say

Posts: 431; Member since: Jan 26, 2015

ROFLLLLLLLLLLLLLLLLLLLLL "decline in mobile revenue" Naturally what happens when you manufacture trash hahahahahaha

6. toukale

Posts: 599; Member since: Jun 10, 2015

This is not news. Their mobile division have been decline for a bit now. It's only because the other parts of the company have been doing so well that people don't talk about their mobile division declining. It's simple really, their ASP tells you all you need to know. They are selling more and more cheap devices compare to the gs8's of the world. And Google entering the high end is going to put more pressure on them first then Apple.

11. tedkord

Posts: 17076; Member since: Jun 17, 2009

Trash that is constantly rated better than the iPhone by nearly all reviewers. That must make the iPhone less than trash. Sewage, maybe?

13. trojan_horse

Posts: 5868; Member since: May 06, 2016

^^ Even less that sewage... More like cold hard feces.

14. You_Dont_Say

Posts: 431; Member since: Jan 26, 2015

iPhone 8+ = 9.2 Rating Galaxy Note 8 = 8.9 Rating iPhone 8+ > Galaxy Note 8 ROFL

15. tedkord

Posts: 17076; Member since: Jun 17, 2009

Now read the rest of the reviews on the web. Or, better yet, maybe you shouldn't. 1(800)273-8255 - just in case you do read them.

26. YeahYeah

Posts: 247; Member since: Mar 16, 2016

Do you really take phonearena rating serious. This is the only mobile site where the iPhone 8 is rated better than S8 and note 8. I'm sure you know why it was rated more than the best. Come on dude

38. sissy246

Posts: 6950; Member since: Mar 04, 2015

LMFAO Now go find a real review and not IPHONEARENA review. Oh what you say, no you don't want to. Then you will read the truth and not iPA's BS.

20. apple-rulz

Posts: 1862; Member since: Dec 27, 2016

Paid shills, that’s what teddy relies on to make himself feel better. Don’t worry teddy, when you sell all those iPhone X’s you bought for a huge profit, you’ll be able to take a nice vacation and relax.

35. tedkord

Posts: 17076; Member since: Jun 17, 2009

I rely on the Note 8, the best large phone in the world. I only bought one, and am not getting any bites on it, which leads me to believe it's not selling gangbusters. Maybe one day you'll be able to afford one.

18. dazed1

Posts: 776; Member since: Jul 28, 2015

Naturally what happens when the phone is 7 + month old, everyone waits for s9 and the hype about the old ones dies, pathetic little iTard.

27. Panzer

Posts: 276; Member since: May 13, 2016

Samsung's other divisions sell parts to Samsung Mobile. Depending on tax or other multiple things it may advantageous to jack up prices on individual parts and reduce your margins on complete devices. Looking at sales volumes from the mobile division they are not that far off year over year. My guess is Samsung is shifting money around. Just like every business I have worked for. Either way Samsung is doing great and loving my S8 and Note 8.

30. TeriusRose

Posts: 108; Member since: May 12, 2017

Why exactly do people act so over the top and dramatic on PA, especially when it comes to people who disagree with them over preference in inanimate objects? I swear that PA is goddamn weird.

34. trojan_horse

Posts: 5868; Member since: May 06, 2016

The same occurs on just about every tech site out there... Fanboy flamewares everywhere.

41. sissy246

Posts: 6950; Member since: Mar 04, 2015

You have got to be the stupidest troll on this site, well you and apple-rulz. Apple is the ONLY one running IOS so sure they will sale more. Samsung has to compete with what, about 5 or 6 others running Android. Hell maybe more, i have lost count.

3. kiko007

Posts: 7457; Member since: Feb 17, 2016

Samsung needs to cut down on the low-end models a bit. Their high-end segment is suffering because of how well they're doing in the other markets.

8. toukale

Posts: 599; Member since: Jun 10, 2015

Selling cheap devices is what allows them to say they are the number one oem's in the world. If you take those cheap devices out, then they would fall to the middle of the pack. No one sells more premium phones than Apple. Samsung ASP is $230 whereas Apple sit well above $650, that is the difference.

12. jeroome86

Posts: 2314; Member since: Apr 12, 2012

Careful now. You will summon a expert.

21. cmdacos

Posts: 3806; Member since: Nov 01, 2016

Apparently it's better to make people spend more than they are capable of. In reality it is best to present numerous options to satisfy all levels and let people choose based on what they can afford.

24. kiko007

Posts: 7457; Member since: Feb 17, 2016

"Apparently it's better to make people spend more than they are capable of." Samsung's a business, not a charity. If you can't pay for goods that's not their problem. And it isn't like they're selling essential items that humans can't live without... they sell cellphones. "In reality it is best to present numerous options to satisfy all levels and let people choose based on what they can afford." Yeah... that's not how it works in a capitalist society. As seen by other companies in other markets, sticking to the higher segments of the populace yields far better potential earnings, user retention, and various other metrics as well.

39. sissy246

Posts: 6950; Member since: Mar 04, 2015

I do agree to a point. They only need 1 low end and 1 mid range and then the S lines and the note line.

4. shamrock_sean

Posts: 37; Member since: Apr 27, 2017

They wanna spend some more money on investing for faster updates

16. tedkord

Posts: 17076; Member since: Jun 17, 2009

They're never going to be fast. Samsung modifies Android down to the framework - it's essentially a different OS. They also add a ton of functionality, and all that needs to be redone for each phone when a new version of Android releases. If you want fast, get a Pixel or other phone with stock Android.

19. apple-rulz

Posts: 1862; Member since: Dec 27, 2016

Poor teddy is seething with anger.

36. tedkord

Posts: 17076; Member since: Jun 17, 2009

Sure I am. Oh wait, I've got the best phone around, the Note 8. And it's why you're constantly crying. Would you like me to sell you my iPhone X 256gb at a discount, so your can afford one?

42. apple-rulz

Posts: 1862; Member since: Dec 27, 2016

Nah, but I am looking forward to that video you’re going to make proving you bought an iPhone X. Made of course with your Note 8.

43. TerryD

Posts: 540; Member since: May 09, 2017

Hell yeah!

5. Rocket

Posts: 614; Member since: Feb 24, 2014

Agreed!

7. LebronJamesFanboy

Posts: 671; Member since: Mar 23, 2013

If Samsung gets rid of the 3.5mm headphone jack, I will never buy a Samsung smartphone again. Same went for Apple.

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