Windhoek: Samsung Electronics, a major player in the technology sector, experienced a rebound in operating profit during the third quarter, propelled by record semiconductor sales, as announced by the company on Thursday.
According to Namibia Press Agency, the company's operating profit surged by 32.48 percent compared to the previous year, reaching 12.17 trillion won (8.5 billion U.S. dollars) in the July-September quarter. This rebound follows a significant decline in the previous quarter and surpassed market expectations of approximately 10.5 trillion won (7.4 billion dollars).
Revenue for Samsung increased by 8.80 percent, totaling 86.06 trillion won (60.4 billion dollars), while net income rose by 21.04 percent to 12.23 trillion won (8.6 billion dollars) in the third quarter. This double-digit growth was driven by record sales of chips such as high-bandwidth memory 3E (HBM3E) and server solid state drives (SSDs), along with the successful launch of new foldable phones.
Samsung anticipates continued strength in the semiconductor market in the fourth quarter, fueled by ongoing investment momentum in artificial intelligence (AI). The company's chip-making business reported an operating profit of 7.0 trillion won (4.9 billion dollars) on revenue of 33.1 trillion won (23.2 billion dollars) in the third quarter. The revenue reached a record high due to expanded HBM3E sales and strong demand for SSDs and double data rate 5 (DDR5) products.
Samsung plans to actively cater to demand from AI and conventional servers with HBM3E, high-density eSSDs, and other memory offerings in the fourth quarter. The display panel division achieved an operating profit of 1.2 trillion won (842.0 million dollars) with revenue of 8.1 trillion won (5.7 billion dollars) during the July-September quarter. Small and medium displays saw performance improvements due to robust demand for flagship smartphones, while large display sales increased driven by higher demand for gaming monitors.
The company forecasts a continued demand for new smartphones in the fourth quarter, alongside higher demand for non-smartphone display products. The mobile phone and networks unit generated an operating profit of 3.6 trillion won (2.5 billion dollars) on revenue of 34.1 trillion won (23.9 billion dollars) in the third quarter. Both revenue and operating profit rose quarter-over-quarter and year-over-year, attributed to strong flagship smartphone sales, the successful launch of Galaxy Z Fold7, and improved sales of tablets and wearables.
Samsung is set to focus on seasonal promotions of AI smartphones, including the Galaxy S25 and foldable phones, in the fourth quarter. In contrast, the TV and home appliance business posted an operating loss of 100 billion won (70.2 million dollars) on revenue of 13.9 trillion won (9.8 billion dollars). Despite solid TV sales due to higher demand for premium products, intensified competition led to a decline in earnings.
The company aims to achieve revenue recovery in the fourth quarter by capitalizing on seasonal demand with premium and large-screen TVs.