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Samsung Posts Record $7.4 Billion Profit Thanks to Galaxy

As expected, Samsung has announced record profits of $7.4 billion thanks to sales stemming from its flagship Galaxy smartphone lineup.

It recorded a profit of $7.4 billion during the third quarter, attributing the earnings to its Galaxy smartphones and tablets, which have both made up for poor chip demand.

The South Korean electronics giant said its third-quarter operating profit increased by 91 percent, while revenue for the quarter that ended on September 30 stood at $47.5 billion, representing a 26 percent increase over the same period in 2011.

The firm's Mobile Communications division is responsible for half of that figure by accounting for $23.9 billion in revenue. Samsung specifically referred to the Galaxy S3 as one of the products that considerably raised profit margins. The smartphone became one of the best selling Android handsets of all time when it sold 20 million units in its first 100 days on sale.

While Samsung didn't divulge information relating to specific smartphone sales figures, analysts believe it sold around 60 million smartphones during the quarter. Comparatively, Apple sold 26.9 million iPhones during the same period.

Elsewhere, the company's display panel business enjoyed a return to profitability with operating profit equaling $1 billion, a 19 percent increase over the same period in 2011. However, profit deriving from Samsung's chip business decreased by 28 percent to 1.15 trillion won due to weak demand for DRAM chips.

"The business environment remained difficult with global economic uncertainties persisting amid the fiscal concerns in the U.S. and Europe," Robert Yi, Samsung's chief of Investor Relations said. "However, we continued to break our quarterly profit records."

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  • keither5150
    You mean thanks to all of Apple's advertising.... i mean lawsuits.
    It's like telling your teenage daughter to stay away from the bad boy.
    Doesn't work very well. Samsung should really thank Apple.
    Reply
  • keither5150
    BTW, wife has galaxy S2 and I will be getting a note 2 shortly.... great phones.
    Reply
  • zoemayne
    good to see some competition/wealth being spread
    Reply
  • halcyon
    I wonder how the Note 2's screen compares with S3's lovely screen.
    Reply
  • youssef 2010
    Let's see how the Note 2 affects samsung's profits
    Reply
  • ivanto
    Good for Samsung and the consumers to have real competition on the market.
    -IvanTO
    Reply
  • rpgplayer
    "...analysts believe it sold around 60 million smartphones during the quarter..." Just think how much profit they would be showing if they charged as much for their phones as Apple does.
    Reply
  • reprotected
    rpgplayer"...analysts believe it sold around 60 million smartphones during the quarter..." Just think how much profit they would be showing if they charged as much for their phones as Apple does.They charged the same for the Galaxy S2 and S3, minus the extra memory.
    Reply
  • applerocks
    rpgplayer"...analysts believe it sold around 60 million smartphones during the quarter..." Just think how much profit they would be showing if they charged as much for their phones as Apple does.
    Probably a whole lot less because they wouldn't be able to command a premium like that. People would stop buying them. If they thought they could charge that much, Im sure they would. Samsung isnt trying to do everyone a favor by keeping phone costs down by reducing their profit margins.
    Reply
  • peterkidd
    You mean $6.4 billion.
    Reply