South Korean company, Samsung Electronics Co. has released its financial results for the third quarter of 2013 which is between July and September. The results have shown an increase in profit from the second quarter of 2013.
The company
made an operating profit of 10.16 trillion won ($9.56 billion) which is a 7
percent increase from 9.53 trillion won ($8.97 billion) in the second quarter.
The main chunk of the profit came from Samsung’s IT and mobile unit.
The mobile
unit brought in 6.7 trillion won ($6.3 billion) while the IT unit which
produces electronic chips for companies including its rival Apple made a profit
of 2.06 trillion won ($2.45 billion), its highest in three years.
The revenue
from the mobile unit came in from sales of Samsung phones from both its high
end and low end smartphones and particularly from the low end smartphones.
Samsung has become the biggest smartphone maker recently snatching the title
from its major rival Apple who only produces high end smartphones and few
products per year.
The key
analysts are looking at is if Samsung will continue to increase its profits in
the mobile unit or it will saturate soon like Nokia did when it dominated the
mobile phone market.
“Samsung has
done well, having rapidly caught up with Apple in the smartphone market. But
I’m concerned with whether Samsung will be able to do better.” LS Asset
Management fund manager Kim Sung-soo revealed to Reuters.
“Like Nokia,
Samsung may hit a limit in increasing market share. Apple is also fighting
back, signaling an uphill battle for Samsung.
Samsung needs to show its new growth engines to revive momentum in its
stock price.” he said.
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Samsung release financial results for Q3