Samsung has released its earnings report for the third quarter (Q3) of 2023, revealing a revenue of $49.99 billion and an operating profit of $1.80 billion.
Although the revenue figures represent a year-over-year decline of 12.3%, they have surged by 12% compared to the previous quarter (Q2). Moreover, the operating profit has seen an impressive increase of over 262% compared to Q2.
In addition, Samsung’s mobile division reported robust sales for its flagship models and sustained demand for mobile displays. Furthermore, Samsung’s memory business managed to reduce losses due to heightened demand for its products and higher average selling prices.
Reviewing Samsung’s mobile division, the company reports consolidated revenue of $22.26 billion and an operating profit of $2.25 billion. This represents a 1.85% increase on a yearly basis and an 8.8% rise compared to the previous quarter (Q2).
The modest recovery was primarily propelled by enhanced consumer demand in the global smartphone market. Samsung’s flagship Galaxy S23 series and the latest generation of foldable phones continued to experience strong demand and maintained their positive momentum from the preceding quarter. The Galaxy S23 lineup is selling up to 23% better than the S22 lineup according to data sourced from Hana Securities.Â
Although the Galaxy Z Fold 5 and Flip 5 are not selling better than their predecessors, they still managed to make enough to propel the mobile division forward in terms of revenue.
Samsung anticipates further growth in the smartphone market as it enters the fourth quarter, traditionally a busy holiday season. Additionally, there is an expected uptick in demand for tablets and wireless accessories such as TWS earbuds and smartwatches.
The Samsung Galaxy S24 series is expected to launch sometime in January next year and it is more than likely going to have a significant impact on Samsung’s financials.
