Samsung reports record revenue but 24% decline in profit in Q3

Samsung posted its Q3 earnings report today, and the numbers revealed the most revenue ever recorded for this three-month period. At KRW 76.78 trillion ($54 billion) it is 4% higher, compared with last year.

The operating profit was not great though. The company made KRW10.85 trillion ($7.6 billion) between July and September, which is 23% less than in Q2, and 26% lower than in Q3 2021.

The Mobile Experience business posted solid profitability, driven by the good sales of foldables such as Galaxy Z Flip4 and Galaxy Z Fold4, as well as the new wearables Galaxy Watch5 series and the Galaxy Buds2 Pro.

These phones also helped the Display division post an increase in profit, but the large panel business (TVs and monitors) actually saw its profit halved.

The outlook for Q4 2022 is macroeconomic instability and geopolitical issues to continue. However, quarterly growth is expected due to end-of-year sales around the Christmas holidays. The company is also planning to expand sales of tablets, while wearables should continue their double-digit growth.

Samsung also mentioned it is planning to “enhance the S-Pen experience” for 2023 which should lead to growth in revenue.

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