Semiconductors and displays are the main factors that help Samsung revive. Their shares increased with the highest rate since 2009…
According to some analysts, Samsung Electronics could generate profit below market expectations due to its unimpressive performance of the mobile unit. However, recently, Samsung has released a profit report which proved them wrong.
Specifically, Samsung’s shares increased 8.7%, which is said to be the biggest jump since 2009. Though the whole results were not totally announced, just looking at the operating income that rose to $6.3 billion can tell how great the company has done. That is a HUGE 79.8% jump if compared to the same period last year. Good job, Samsung!
In addition, semiconductors and displays are the ones that help Samsung become so strong. They contributed much to the success of many recent Samsung Galaxy flagships that are competing well with Apple iPhones together with Chinese and Indian devices. Moreover, the semiconductor business of Samsung is gaining profits from providing components for Apple iDevices. And if Samsung just keeps doing well, they will be able to stand still at the top place among semiconductor producers, making it five quarters in a row.
Also for the mobile division, analysts’ expectations are 24% rise compared with the last year (which is around $1.9 billion). And this time, Samsung will be able to see the year-on-year rise for the first time in sever quarters.
However, that is for the third quarter of 2015 when Samsung Galaxy Note 5 and S6 edge Plus were launched one month earlier than Apple iPhone 6S and 6S Plus. In addition, Samsung smartphones have to fight with many high-end but cheaper handsets and low-end ones from Chinese and Indian makers. Note that the sub-$200 phones are mainly responsible for increasing the sales
Apart from such an impressive report, we wonder if Samsung can continue to do that in this Q4 once Samsung Galaxy S6 shipments are dropping “significantly” according to an IBK Securities analyst. He also adds that the Average Selling Price in September dropped 14%.
Well, anyway, we would like to congratulate Samsung on their results in Q3 and hope that they will remain the same or even develop more at the end of the year.