Samsung beats analyst expectations, predicts first quarterly profit hike in two years
After seven consecutive quarters of financial anguish, the worst seems to be finally behind Samsung, which unexpectedly boosted its profits between July and September chiefly on strong demand for semiconductor components and displays.
The full, official Q3 numbers aren’t in yet, but the earnings guidance announced earlier today looks encouraging, with consolidated sales estimated at 51 trillion Korean won, and operating profit circling 7.3 trillion won.
That converts to around US$43 billion and $6.2 billion respectively, two mind-blowing figures we’re pretty certain no Samsung rival besides Apple can even dream of posting in the foreseeable future.
Of course, seeing as how we’re dealing with the global smartphone market leader, which managed to retain its domination throughout the recent economic “crisis”, it’s best to put those scores into historical perspective to conclude how impressive they really are.
Compared to Q2 2015, both sales and profits have gone up roughly 5 percent, from 48.5 and 6.9 trillion won. That sounds almost negligible in the grand scheme of things, but year-on-year, the bottom line surged close to 80 percent (!!!), from 4.1 trillion won in the third quarter of 2014.
Towards the end of the month, when the final, detailed report will be published, the numbers can obviously drop (or rise), but the outline shall remain Samsung is at last on the path back to prosperity. The success of chips, displays and other parts, as well as the won’s depreciation apparently helped cover for smartphone shipments not quite on par with Apple’s, though the Galaxy Note 5 and S6 Edge+ (marginally) boosted those figures too.