Samsung announces record results but slower growth

For its fiscal third quarter, Samsung announced new record highs and strengthened its position as the number one mobile. Although its slow growth, the Korean giant can count on the health and diversity of its subdivisions.

A few days before his arch-rival Apple, Samsung (Electronics), a now undisputed world leader of mobile phones, announced its financial results for the third quarter. Despite the decline in performance in smartphones, as related to an energy boost its main competitors as market saturation, its good performance in the field of memory cards partly offset the slight degradation.

Record but moderate

Thus, the net profit for the period July to September emerged up 25.6% to 8,240 billion won, or 5.6 billion euros, against 6,560 billion won a year earlier, a rate of growing almost twice as fast as in the previous quarter.
Sales rose 13.2% to 59,000 billion won (40.2 billion euros). Operating profit amounted to 10,160 billion won in the meantime, up 26% over one year when he was jumped by 47.5% in the second quarter.

Slowdown in sales

These results are consistent with the predictions of group faces in smartphones, a market saturation on the high end, the margins of the division also progressing more rapidly as a result of a slowdown in sales of its flagship product, the Galaxy S. Analysts believe that Samsung has elapsed between 85 and 89 million smartphones during the period.

However, Samsung managed to maintain its position as number one in the sector because, unlike his great rival, the American Apple, its range of smartphones also includes medium-end devices at more affordable prices. The downside, these phones lessen the overall performance of the group and the mobile division whose operating margin is displayed slightly lower, at 18.3% against 18.8% in the second quarter.

Galaxy S4, the Korean bestseller, is slowing.

No memory loss

In total, the group has limited costs due to higher prices of memory chips and semiconductors.The turnover of the division increased by 12% to 9,740 billion won and an operating profit doubled to 2.60 billion, more than 20% of total operating income. "We expect an increase in demand in the next quarter due to favorable seasonal conditions (shopping season), but the persistence of macroeconomic instability and increased competition continue to weigh, "saidRobert Yi, vice president of Samsung, said in a statement.