Samsung Electronics reported third quarter earnings that beat market estimates thanks to strong demand for its smartphones which cushioned a fall in profits from the firm's memory chip business.
Operating profit recorded six.seven billion U.S. dollars for the July to September period.
That's down 56 percent on-year but up near 18 percent on-quarter.
Sales came to 53 billion dollars, down more than 5 percent on-year, but up 10 percent on-quarter.
The semiconductor business, by far Samsung’s main source of income, reported an operating profit of 2.six billion dollars, down over 77 percent on-year amid falling global chip prices and an oversupply of chips.
But its mobile division saw its operating profits jump 32 percent on-year to 2.five billion dollars thanks to solid sales of its flagship Galaxy Note 10 and mid-tier A-series phones.
"Generally, the numbers are looking fairly reasonably good. If you look at q/q number, it's up 17 percent. So clearly, mostly likely, earnings have bottomed. If the trend on Dram demand picks up in the future due to various reasons, then Samsung Electronics future looks quite interesting, quite good."
The display business saw operating profits up slightly on-quarter on increased productivity and efforts to reduce the cost of its OLED panels.
In its statement Thursday, Samsung Electronics said it expects fourth quarter earnings in the mobile business to fall on-quarter on higher marketing costs with a slight decline in shipments.
For 2020, Samsung expected an increase in sales in 5G products and foldable devices.
As for its memory chip business, Samsung expects demand for chips to gradually pick up thanks to stronger demand from data center customers, but at the same time, the company warned that semiconductor sales for 2020 are still affected by global economic uncertainties.
Kim Hyesung, Arirang News.