Belfast Telegraph

UK Website Of The Year

Samsung's computer chips drive a massive profit hike

By Martyn Landi

Published 30/10/2015

Samsung said it made US$6.4bn (£4.1bn) in operating profit in this quarter
Samsung said it made US$6.4bn (£4.1bn) in operating profit in this quarter

Samsung has confirmed its first profit growth in more than a year, announcing record revenue from computer chips as its smartphone business slows.

The Korean technology giant said it made US$6.4bn (£4.1bn) in operating profit in this quarter, a rise of more than $2bn (£1.3bn) on this time last year, with net profit and sales also up compared to 2014.

Samsung said this was being driven by its computer chip and display panel parts of the business. But the firm's mobile business slowed with it reporting $2.1bn (£1.3bn) in operating profit, which although an increase on the same quarter last year, was a drop from $2.4bn (£1.5bn) in the previous quarter.

Samsung's mobile arm has come under pressure from Apple in the last year thanks to the introduction of the larger iPhone 6 Plus - a 'phablet' similar in size to several lines of Samsung device.

More competition at the lower price points from smaller manufacturers in China and beyond has also squeezed Samsung's position. But Samsung said they had seen a "significant" increase in sales of two of their flagship smartphones, the Galaxy Note 5 and the Galaxy S6 edge+, but a price cut to their iPhone competitor S6 and S6+ models contributed to a profit decline in the mobile business.

This was despite the company shipping more phones and seeing an increase in revenue, which Samsung attributed to selling more cheaper models.

Belfast Telegraph

Your Comments

COMMENT RULES: Comments that are judged to be defamatory, abusive or in bad taste are not acceptable and contributors who consistently fall below certain criteria will be permanently blacklisted. The moderator will not enter into debate with individual contributors and the moderator’s decision is final. It is Belfast Telegraph policy to close comments on court cases, tribunals and active legal investigations. We may also close comments on articles which are being targeted for abuse. Problems with commenting?

Read More

From Belfast Telegraph