Samsung Electronics has posted its financial performance for the third quarter (Q3) that ended on September 30. The South Korean tech giant hit total consolidated revenue of KRW 67.40 trillion, marking a 12 per cent increase from Q2, on the back of new smartphone launches. and sales of premium display products. Its operating profit surged to KRW 2.43 trillion, driven by robust sales of flagship handset models and increased demand for displays, while the losses at the Device Solutions (DS) Division narrowed. LSEG analysts had estimated operating profit to touch KRW 2.3 trillion.
Samsung Mobile Business or MX and Networks businesses posted KRW 30.00 trillion in consolidated revenue and KRW 3.30 trillion in operating profit for the September quarter. Overall market demand increased from the previous quarter, driven by a recovery in the global smartphone market.
The sales and profitability of the MX business increased quarter-on-quarter, driven by the successful launch of new flagship models. New foldable devices, tablets and wearables recorded strong sales, supported by a stable supply, and the Galaxy S23 series, launched in the first half of 2023, also maintained solid sales momentum.
In the fourth quarter, due to seasonality, the smartphone market is likely to grow and experience intensified competition, especially in the premium segment. Competition is also expected to increase in the mass-market segment, while market uncertainties are expected to remain due to ongoing geopolitical instability.
The Memory Business managed to cut losses in comparison to the previous quarter, driven by amplified sales of high-value products and slightly higher average selling prices. However, earnings in system semiconductors was hit by a delay in the recovery of demand for major applications, although the Foundry Business achieved a new quarterly high due to a surge in new backlog from design wins.
In the fourth quarter, the DS Division will focus on sales of high value-added products such as High Bandwidth Memory (HBM) while also strengthening its technological leadership. Both the DX Division and Samsung Display Corporation (SDC) will seek to maintain solid profitability by focusing on premium markets.
In 2024, while macro-economic uncertainties are likely to persist, memory market conditions are likely to recover.
The DS Division will seek to expand sales of advanced node products and plans to meet demand for high-performance, high-bandwidth products by increasing sales of HBM3 and HBM3E with the industry-leading HBM production capacity in the industry. For the Foundry Business, the second generation 3-nanometer (nm) Gate-All-Around (GAA) process will start mass production and operations will begin at its new factory in Taylor, Texas.
Also, in the Advanced Package business, production will begin, based on the multiple orders it has received from domestic and overseas HPC customers, including orders for the Company’s turnkey service that combines logic, HBM and 2.5D advanced packaging technologies
