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Samsung’s smartphone and display sales drive income growth

Samsung has been grappling with significant profit declines and record-breaking losses in recent quarters, but in its latest earnings report, the company expresses optimism for the future. Samsung attributes its improved performance over the past three months to strong sales of its flagship mobile devices and premium displays. Furthermore, the company notes that its Device Solutions (DS) division, which includes its memory and foundry businesses, has reduced its losses. Samsung anticipates a gradual recovery in demand for memory chips, driven by the increasing popularity of artificial intelligence.

For the third quarter of 2023, Samsung reported consolidated revenue of KRW 67.40 trillion ($49.9 billion), marking a respectable 12 percent increase from the previous quarter. The company also posted a profit of KRW 2.43 trillion ($1.80 billion), which, while lower than the same period in 2022 (KRW 10.85 trillion or $7.6 billion), represents a significant improvement compared to the $527 million profit reported in the second quarter.

Samsung’s mobile and network business reported consolidated revenue of KRW 30 trillion ($22.17 billion) for the quarter, along with an operating profit of KRW 3.30 trillion ($2.44 billion). The third quarter saw increased demand, attributed to signs of recovery in the global smartphone market. Samsung’s Galaxy S23 series maintained strong sales, while its foldables, tablets, and wearables also recorded robust performance. The company expects smartphone sales to grow in the next quarter, driven by the holiday season, and anticipates market recovery next year as consumer sentiment stabilizes in anticipation of a global economic rebound.

In the third quarter, Samsung’s mobile panel business experienced significant earnings growth due to a new flagship model released by major customers. The company intends to continue focusing on OLED panels for its mobile display business and plans to establish a supply chain catering to the augmented and virtual reality market.

Finally, Samsung’s semiconductor division reported operating losses of KRW 3.75 trillion ($2.77 billion) for the quarter, a slight improvement from the KRW 4.36 trillion ($3.23 billion) losses in the previous quarter. Samsung foresees improved demand for PCs and mobile devices in the upcoming period and expects strong server demand from cloud service providers, driven by generative AI applications.

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