Samsung Electronics has reported a record quarterly profit of AU$7.15 billion, crediting strong sales of its Galaxy line of smartphones and tablets for making up for weak chip demand.
The Galaxy S3 helped Samsung dial up record quarterly profits.
(Credit: Josh Miller/CNET)
The electronics giant said that its third-quarter operating profit increased 91 per cent to US$7.39 billion, in line with guidance offered earlier this month. Revenue for the quarter ended 30 September was 52.18 trillion won (AU$45.78 billion), a 26 per cent increase over the same period last year.
The company's Mobile Communications division accounted for half of that figure, logging 26.25 trillion won (AU$23 billion) in revenue. Samsung singled out the Galaxy S3 as a key component in raising profit margins. The company said that sales of LTE-enabled devices increased in the third quarter, but that competition hurt profit margins.
Samsung doesn't disclose its smartphone sales figures, but analysts believe that the company sold about 60 million smartphones during the quarter. By comparison, Apple, which hours earlier reported profits of US$8.2 billion on revenue of US$36 billion, sold 26.9 million iPhones during the same period.
Its display-panel business swung back to profitability, with an operating profit of 1.09 trillion won a 19 per cent increase over the same period last year. However, profit from Samsung's chip division fell 28 per cent to 1.15 trillion won on weak demand for dynamic random access memory (DRAM) chips.
The company trumpeted another record quarter, despite facing tough economic conditions.
"The business environment remained difficult, with global economic uncertainties persisting amid the fiscal concerns in the US and Europe," Robert Yi, Samsung's chief of Investor Relations, said in a statement. "However, we continued to break our quarterly profit records."