Samsung's smartphones are getting hammered by Apple at the high end and Chinese smartphone vendors at the low-end, and much of their rise in profits is attributable to foreign exchange rates. Good thing their component business – fueled in part by the fact that Samsung is one of two manufacturers of the A9 processor in every iPhone 6s – is doing so well.
Beyond its smartphones and tablets, the NX-1 [B&H | Amazon] is a breakthrough product for Samsung. The company, is better positioned than anyone else to take on Apple, and in theory is in a good position to take on the photo giants, too. So reading about an 80% jump in profits might at first lead one to believe that Samsung is on a roll.
Samsung is an incredible company, but too much of that profit jump is mostly paper.
Keep a close look at the details – it makes what Apple is doing in the smartphone space all the more impressive, and it is another indication of just how quickly Chinese manufacturers have stepped to the very front of top-tier manufacturers.
Samsung Electronics Says Its Profit Rose Nearly 80% in Third Quarter
Via NY Times:
The preliminary report for July to September suggested that the company’s emphasis on making microchips was paying off. The results ended the company’s two-year streak of shrinking profits.
The South Korean electronics maker estimated operating profit at 7.3 trillion won, or about $6.3 billion, in the third quarter, well above the 4.1 trillion won posted a year earlier. Sales totaled 51 trillion won, up about 8 percent from 47.4 trillion won from the same period a year earlier. The numbers are preliminary; Samsung will post its final earnings this month.
The results, which handily beat analyst expectations, sent Samsung’s shares up more than 5 percent in early trading in South Korea. Though the big jump in profit comes in part from the weakness of the company’s performance last year and from a weakening Korean currency, the increased profit is a fresh sign that one of the company’s two major engines of growth, its semiconductor division, is faring well.
Read full article at NY Times “Samsung Electronics Says Its Profit Rose Nearly 80% in Third Quarter”
(cover photo credit: snap from NY Times)
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