Samsung have elapsed between 85 and 89 million smartphones in the third quarter. Despite the decline in margins in the mobile, it publishes new record results.
Samsung Electronics, the world leader in mobile phones, has generated new record profits in the third quarter despite a decline in performance in smartphones due to saturated market, partially offset by sales of memory cards.
New record
The net profit for the period July to September emerged in up 25.6% to 8.24 trillion won (5.6 billion euros) against 6.56 trillion a year earlier, a slower growth rate of almost twice that 'the previous quarter. "Despite unfavorable exchange rates in emerging markets, increased competition on prices and economic uncertainty around the world, we were able to generate record profits", welcomed the Vice President Robert Group Yi, without commenting further slowing the growth of operational Samsung.
The turnover has increased by 13.2% to 59.000 trillion won (40.2 billion) and an operating profit of 10.160 billion, up 26% over one year when he was jumped 47.5% in the second quarter. These results are consistent with the predictions of group facing a saturated market of high-end smartphones.
Margins are shrinking in the mobile
The margins of his division are also growing more rapidly as a result of lower sales of its flagship device, the Galaxy S4 , while South Korea has spent a fortune on marketing to promote the latest range. "We expect an increase in demand in the next quarter due to favorable seasonal conditions (shopping season), but the persistence of macroeconomic instability and increased competition continue to weigh", warned, however, Robert Yi.
The Samsung share, which represents half of the market capitalization in Seoul, was unchanged at 1.449 million won.
The global leader in portable electronic chips and flat screens does not publish its reports sales but analysts said it sold between 85 and 89 million smartphones during the period under review. Samsung manages to maintain its number one spot in this sector because, unlike his great rival, the American Apple, its range of smartphones also includes medium-end devices at more affordable prices. The downside, these phones lessen the overall performance of the group and the mobile division whose operating margin is displayed down to 18.3% against 18.8% a year, yet up from the second quarter when it was established at 17.7%.
Demand for memory cards
For Oh Young-Bo, an analyst at Securities Hanmag, results are generally "positive" and herald a new record quarter for the period from October to December with an operating profit that could cross the 11,000 billion won.
In total, the group has limited costs through price increases and sales of memory chips and semiconductors . The turnover of the division increased by 12% to 9.74 trillion won and an operating profit multiplied by two, or more than 20% of total operating income.
Most of the revenues from this segment comes from memory cards which represent two-thirds. "The demand for memory cards will remain strong with the release of several smartphones low and high-end approach the holiday season" year-end, according to Samsung. Oh Young-Bo said that "the price of memory cards will also remain high and sales of graphics cards will increase when released the new Sony Playstation ".
The division of consumer electronics, the second group in terms of revenue, is struggling with margins at half (2.9% in the third quarter) and a market very active screen TV. Robert Yi said during a conference call that Samsung should receive 1.5 trillion won from the sale of the participation of its subsidiary Samsung Display (screens) in a joint venture with the U.S. company Corning Inc.
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