Samsung reported this morning that it earned an operating profit of $7.7 billion on revenues of $54.1 billion in the quarter ending September 30. Revenues were up 4 percent year-over-year, a record, but operating profits fell by 31 percent. But the best news for Samsung, perhaps, is that it expects its smartphone business to continue growing despite economic hurdles.
“Market demand for smartphones and wearables is forecast to increase from [the] previous quarter due to year-end seasonality despite ongoing geopolitical issues and macroeconomic instability,” the firm noted in its quarterly financial announcement. “Samsung aims to sustain strong sales of flagship products, including foldable devices and S22 series, and expand sales of Galaxy Ecosystem devices such as tablets and wearables. In addition, new mass market smartphone model launches [are] expected to help drive sales volume.”
Samsung’s mobile division delivered an operating profit of $2.3 billion on revenues of $22.7 billion, up 13 percent year-over-year (YOY). The firm credited strong growth in sales of the Galaxy Z Fold4 and Z Flip4 for the gain, “despite a challenging market environment.” The Galaxy S22 series, which launched earlier in the year, also “maintained solid sales momentum, posting significant revenue growth from a year earlier,” Samsung noted.
Looking to 2023, Samsung expects smartphone and wearable sales to grow despite the expected continued global economic instability. The market for low- and mid-end tablets will contract slightly, it said, while that for premium tablets is likely to remain solid. “The company plans to … boost profitability through sales growth of Galaxy Ecosystem devices [and] … aims to achieve revenue growth in 2023 and secure solid profitability.”
Tagged with Samsung