Samsung mobile earnings improve in third quarter

Samsung Electronics reported third-quarter results ended September 30, 2019. The Korean electronics giant posted KRW 62 trillion in consolidated quarterly revenue and KRW 7.78 trillion in quarterly operating profit. The company said third-quarter profit fell sharply from a year earlier but improved from the previous quarter, as stronger smartphone sales and improved utilization in mobile OLED screens were weighed down by continued weakness in the memory chip market.

The IT & Mobile Communications Business posted KRW 29.25 trillion in consolidated revenue and KRW 2.92 trillion in operating profit for the September quarter.

Mobile earnings in the third quarter improved significantly QoQ on robust shipments of the flagship Galaxy Note 10, a better product mix and higher profitability in the mass-market segment. The Galaxy Note 10 in the third quarter exceeded its predecessor’s sales performance, presenting double-digit growth in volume. Cost reduction brought on by the completion of the A series lineup transition also contributed to improved profitability.

Notably in the third quarter, the Company firmed up its global technology leadership with the expansion of 5G smartphones, in addition to the launch of the Galaxy Fold featuring a new form factor.

The company said it expects fourth-quarter earnings in the Mobile Business to decrease quarter-on-quarter as “marketing costs are set to rise and shipments to decline slightly, with flagship model sales weakening from their post-launch peaks.”