South Korean tech titan Samsung has announced its financial results for the third quarter of 2013 and, even though the company forecast a profitable quarter, the official figures exceeded even those expectations.
Samsung’s revenue for the period from July to September 2013 rose 13pc to reach a record high of 59.08trn won (about €40.25bn).
The company’s consolidated operating profit was also record-breaking at 10.16trn won (about €6.9bn), representing a 26pc increase year-on-year. Samsung’s mobile division accounted for two-thirds of this figure, though sales are slowing slightly and the operating profit margin from its mobile communications division dipped from 18.8pc to 18.3pc.
Analysts estimate that Samsung sold between 85m and 89m smartphones during the quarter, and the company noted a 10pc increase in shipments. However, this does little to discourage theories that the high-end smartphone market has reached saturation point and Samsung’s record profits have likely been driven by sales of cheaper mid-range devices in developing markets.
“Although we expect demand to increase next quarter due to peak seasonality, lingering macro-economic issues and intensifying market competition will remain in the fourth quarter,” said Robert Yi, Samsung’s head of investor relations.
While Samsung’s IT and mobile communications division saw revenue increase by 3pc, its semiconductor business saw the highest level of growth, increasing by 12pc on the previous quarter. This growth was largely driven by sales of memory chips for mobile devices and games consoles.
Samsung’s net profit for the third quarter also reached a record high of 8.24trn won (about €5.6bn).