Samsung posts record Q3 profit, expects a much tougher year to follow

Samsung posted its quarterly report for Q3 and again smashed its own record by reaching KRW65.46 trillion ($57.3 billion) in revenue and KRW17.57 trillion ($15.4 billion) in operating profit. However, the Korean company realizes the money flow will likely decrease going forward due to the end of a two-year boom in memory chips demand.

The IT & Mobile Division, responsible for the Galaxy smartphones, recorded a 10% YoY decline in sales to KRW24.91 trillion ($2.2 billion) compared with KRW27.69 trillion ($2.4 billion) in Q3 2017 despite “solid flagship sales.”

The semiconductor business brought Samsung to a new quarterly high, backed by strong sales of memory products, as well as demand for server and mobile memory. The numbers are likely to drop in Q4 2018 due to the weak seasonality for the business that will extend to the next quarter as well. The price for memory chips has fallen to a two-year low, while rivals are bringing competitive products.

Samsung also announced its plans for 2019. In order to offset the reduction in sales and operating profit, the Networks Business “will continue to focus on strengthening its competitiveness in emerging technologies like 5G, AI, and automotive electronics. There will also be an expansion of online sales and B2B relationship with built-in appliances and system air conditioners.

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