Samsung's computer chips drive a massive profit hike
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.