Samsung Sales Boast Record High Profit
The South Korean smartphone maker still seems to be going strong, despite the predictions of the analysts that the smartphone market has become saturated. Another record high was established by the operating profit of Samsung Electronics in the July-September quarter. However, as per the experts, this record profit on Samsung sales was most probably driven by the robust sales of the mid-range and cheaper smartphones that it’s marketing in developing countries. According to the maker of the Galaxy line of smartphones, as compared to its last year earnings, its operating income had increased by 25%. The result had turned out better than the expectations in the market.
The Samsung sales of the third quarter had also shown a record 13% increase. The net income and other related details of its complete financial performance were not disclosed by the South Korean giant. The company will be announcing its complete results later in this month. The analysts were of the opinion that the record quarter had come to be because of the increased profit from the semiconductor business of Samsung Electronics and the high sales of its low-end and mid-range smartphones in emerging markets. It had been expected that the profits of the South Korean firm would be dented because of the slowing growth of high-end smartphones in developed countries.
However, the success of the company’s expansion in the mobile phone market of developing countries was underlined by the latest results. The sales of the current flagship smartphone of the company the Galaxy S4 that was launched in April saw a plunge in the third quarter, but as per the analysts, the company had still managed to sell more smartphones in contrast to the previous quarter as its cheaper smartphones had been snapped up pretty quickly. Last month, the company launched its latest device of the phablet line; the Galaxy Note 3.
Along with the most recent iteration of the Galaxy Note line, the company made another introduction in the form of Galaxy Gear. This is a wristwatch that not only has a touchscreen display, but also has the capability of placing and receiving phone calls through the Samsung smartphone owned by people. While other smartphone companies are struggling to remain stable in the market, Samsung is not facing so much trouble as it is quite diversified. Not only is Samsung Electronics the largest maker of smartphones all over the world, but it is also the largest vendor of TVs and computer memory chips.
In recent years, only two thirds of its overall profit was earned with the contribution of smartphones. There is a tepid demand for personal computers and televisions that are also an integral part of the company. Samsung beat Apple Inc. in the race of introducing a smart watch and has launched its own device in the wearable technology market. The company is expected to expand on its line of watches and introduce better versions, just like its smartphones. So far, it remains quite stable in the smartphone market with its variety of phones at every price point.