Strong Component Sale and Weak Won help Samsung’s Third Quarter Profits
On Wednesday, Samsung Electronics reported profits for the third quarter which surpassed the analysts' expectations. However, the analysts' say that it resulted mainly due to steady sale of components like mobile display and chips as well as the currency exchange rates that remained favorable helping to hide the consistent weakness in the company's smartphone business.
According to Samsung, the world's largest smartphone maker, its operating profit for the quarter that ended in September was 7.3 trillion won or approximately $6.3 billion which was more than the analyst forecasts. The growth in sales for the quarter was seven percent and rose to 51 trillion won ($43.9 billion). Later in the month, the South Korean company will be announcing the overall net profit and earnings separately for each of its divisions.
The strong results reveal that things are becoming better for Samsung and the company is in the path of recovery following a slump in its earnings last year. However, still the smartphone maker is facing a tough time to hold on to its market share with the growing competition from rivals like Apple, Xiaomi and Huawei.