Samsung’s profit 23% lower in summer despite smartphone success

9th November, 2011 by adina
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Finalized summer results for Samsung show its net profit dropped 23 percent in a year-to-year comparison as its display and chip groups offset the smartphone success. The summer quarter brought a modest $3.1 billion, slightly down from the spring too. It had been dragged backwards by slow sales of traditional computers and TVs, which caused the display division a loss of money. The chip business for memory and mobile processors had also the profit cut to $1.42 billion.

Operating profit at $2.3 billion was over double and came mainly from runaway success of handsets like the Galaxy S II. Although the company did not say how many smartphones and cellphones it had shipped, leaks have mentioned over twenty million smartphones and topped the 17.07 million iPhones of Apple. This success is not supposed to repeat as Apple waits for its iPhone 4S to establish historical sale records.

Samsung’s past fall quarter might get a lift from sales of the holiday, but most of that may still come from smartphones, such as the Galaxy Nexus, as well as closely related components that the company provides to itself and to customers including Apple, like mobile screens and flash memory.

There is no mention of the preliminary bans Apple requested on the Galaxy Tab 10.1 in Germany and Australia and also a brief ban related to the Galaxy phone line.


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