Samsung credits strong smartphone and mobile display sales for income growth

Samsung Credits Strong Smartphone and Mobile Display Sales for Income Growth

Samsung, the tech giant that has been grappling with profit declines and record-breaking losses in recent quarters, is showing signs of optimism. The company’s latest earnings report points to a significant turnaround, thanks to robust sales in two key sectors: smartphones and mobile display panels.

Samsung reported a consolidated revenue of KRW 67.40 trillion ($49.9 billion) for the third quarter of 2023, marking a commendable 12 percent increase from the previous quarter. While this figure is just a third of what the company earned in the same period in 2022, it’s a vast improvement compared to the meager $527 million profit reported for the second quarter.

The mobile and network business segment stood out, with KRW 30 trillion ($22.17 billion) in consolidated revenue and KRW 3.30 trillion ($2.44 billion) in operating profit. This turnaround is attributed to the global smartphone market’s signs of recovery, as the Galaxy S23 series maintained “solid sales momentum,” and Samsung’s foldable devices, tablets, and wearables recorded strong sales. The company anticipates further growth in smartphone sales due to the holiday season and expects the market to rebound next year as consumer sentiment stabilizes with the anticipation of global economic recovery.

Samsung Credits Strong Smartphone and Mobile Display Sales for Income Growth
Samsung’s resurgence is primarily attributed to its strategic focus on smartphones and mobile display panels (Image credit: Samsung)

Samsung’s mobile panel business also performed remarkably, reporting significant earnings growth driven by new flagship models from major customers, potentially including Apple’s iPhone 15. The company plans to focus on OLED panels for its mobile display business and establish a supply chain for the augmented and virtual reality market.

Although the semiconductor division still posted losses of KRW 3.75 trillion ($2.77 billion), it’s a slight improvement from the previous quarter’s KRW 4.36 trillion ($3.23 billion) losses. Samsung is hopeful that the demand for PCs and mobile devices will increase in the next period, especially with the anticipated demand from cloud service providers due to generative AI applications.

Samsung’s resurgence is primarily attributed to its strategic focus on smartphones and mobile display panels, demonstrating the company’s ability to adapt to changing market conditions and consumer preferences. The tech giant seems poised for a promising future as it continues to innovate and meet evolving industry demands.