Samsung Electronics Expects Third-Quarter Operating Profit to Be Its Highest Ever

Samsung Q3 2018 Results Company Posts USD 57.5 Billion Record Revenue

Samsung Q3 2018 Results Company Posts USD 57.5 Billion Record Revenue

The South Korean company said it's expecting to set a new record profit of about 17.5 trillion won ($15.8 billion) in the third quarter, up 20 percent from the same period a year ago.

Sales for the July-to-September quarter are expected to reach 65 trillion won, the world's largest maker of smartphones and memory chips said in a regulatory filing. The results are in line with recent analyst projections and mark another episode of record profits for the South Korean company whose second-quarter results ended up being slightly underwhelming, at least in the consumer electronics department where the Galaxy S9 line ended up falling short of sales expectations. The guidance range is also above KRW58.48 trillion in the prior quarter.

In the third quarter, market analysts believe the mobile business dropped 9 percent to 25 trillion won, while operating profit fell almost 30 percent year-on-year to 2.3 trillion won compared to the 3.3 trillion won recorded a year ago. Still, the number was below a market estimate of 771.7 billion won, based on a survey conducted by Yonhap Infomax on 15 securities firms.

On the contrary, Samsung's mobile communication business is believed to have suffered.

Koh added that Samsung was close to concluding the development of a foldable smartphone and would be ready to unveil it this year.

It was the biggest-ever quarterly profit in the company's history, surpassing the market expectations of around 17.2 trillion won (15.3 billion USA dollars).

Samsung plans to curtail growth in memory chip output next year to keep supplies tight amid an expected slowing in demand, Bloomberg News reported last month.

Samsung really appears to be cashing in chips. Business from Apple reportedly accounts for 25 to 30 percent of sales in Samsung's displays division, which makes up a sizable 10 percent piece of Samsung's overall business. It launched the Galaxy Note 9 in August but has been beset by intensifying competition in global markets, notably from cheaper Chinese rivals. "But in the longer run, it needs to grab more market share in handsets".

DRAMeXchange, a computer chip market research firm, estimated that DRAM and NAND flash prices will fall in the fourth quarter compared to the third quarter due to difference between supply and demand.

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