Skip to main content

Samsung confirms its first profit growth since the Galaxy S4

Samsung confirms its first profit growth since the Galaxy S4

Share this story

Samsung posted its third-quarter earnings today, revealing that — as it predicted earlier this month — the company is back to operating profit growth after seven quarters of decline. Samsung says it made 7.39 trillion Korean won ($6.42 billion) in operating profit during the Q3 period, a hefty year-on-year rise for the company, which posted a disappointing operating profit in Q3 2014 of just 4.1 trillion won ($3.6 billion). Both net profit and sales rose also increased from the same period last year, rising from 4.22 trillion won ($3.7 billion) on sales of 47.45 trillion ($41.7 billion) in 2014's Q3, to 5.46 trillion won ($4.8 billion) on sales of 51.68 trillion ($45.6 billion).

The Korean company said revenue was driven mainly by its semiconductor and display panel segments. Operating profits, on the other hand, jumped by 500 billion won ($440 million) thanks to a weak exchange rate between South Korea and other key currencies. While operating profit was up from Q2 this year, net profit was down, falling slightly from 5.75 trillion won ($5.06 billion).

Samsung's mobile division was less helpful, posting 2.4 trillion won ($2.1 billion) in operating profit for the quarter — a rise from last year's Q3 profit of 1.75 trillion ($1.54 billion), but a dip from 2.76 trillion ($2.4 billion) in Q2. Samsung said it saw "a significant" increase in sales of Galaxy Note 5, Galaxy S6 Edge+, Galaxy A, and Galaxy J phones. but while it shipped more mid-tier smartphones, the price cut of its flagship Galaxy S6 and S6+ contributed to a decrease in year-on-year profits in the mobile segment. In a bid to convert people from iPhones, Samsung cut the price of the newest Galaxy handsets earlier this year, sweetening the deal further by offering up to $120 back for US customers getting the phones on a carrier instalment plan. Samsung's decision to push the Note 5 out in August — a month earlier than normal — doesn't seem to have impacted the mobile division's profits greatly.

The company says it's expecting a stronger fourth quarter than third for smartphones, but specifies that competition — between its products, Apple's iPhones, and newer, cheaper challengers from Chinese companies — is getting stiffer. Next year will be even tougher for smartphones, Samsung says, as it expects the growth rate for the market to slow continuously. In response, the company says it will push its new payment service, Samsung Pay, and refocus on its wearables to "respond to market needs."

The company says the smartphone growth rate will fall in 2016

While an increase in operating profit and a year-on-year net profit increase points to a more positive quarter for the Korean company after two years of declining profits, Samsung has warned that it expects earnings to decline in Q4, driven downwards in part by unfavorable foreign exchange rates. Also worrying is the performance of its core smartphones. While the Galaxy S6 and S6+ were well reviewed devices, and the mobile division was able to record a year-on-year increase in profits over 2014's dismal Q3 results, Samsung mobile's profits dropped again quarter-on-quarter as people continue to buy iPhones.

Today’s Storystream

Feed refreshed 5:33 PM UTC Striking out

A
Youtube
Andrew Webster5:33 PM UTC
Look at this Thing.

At its Tudum event today, Netflix showed off a new clip from the Tim Burton series Wednesday, which focused on a very important character: the sentient hand known as Thing. The full series starts streaming on November 23rd.


A
The Verge
Andrew Webster4:28 PM UTC
Get ready for some Netflix news.

At 1PM ET today Netflix is streaming its second annual Tudum event, where you can expect to hear news about and see trailers from its biggest franchises, including The Witcher and Bridgerton. I’ll be covering the event live alongside my colleague Charles Pulliam-Moore, and you can also watch along at the link below. There will be lots of expected names during the stream, but I have my fingers crossed for a new season of Hemlock Grove.


J
Twitter
Jay PetersSep 23
Twitch’s creators SVP is leaving the company.

Constance Knight, Twitch’s senior vice president of global creators, is leaving for a new opportunity, according to Bloomberg’s Cecilia D’Anastasio. Knight shared her departure with staff on the same day Twitch announced impending cuts to how much its biggest streamers will earn from subscriptions.


T
Twitter
Tom WarrenSep 23
Has the Windows 11 2022 Update made your gaming PC stutter?

Nvidia GPU owners have been complaining of stuttering and poor frame rates with the latest Windows 11 update, but thankfully there’s a fix. Nvidia has identified an issue with its GeForce Experience overlay and the Windows 11 2022 Update (22H2). A fix is available in beta from Nvidia’s website.


A
External Link
If you’re using crash detection on the iPhone 14, invest in a really good phone mount.

Motorcycle owner Douglas Sonders has a cautionary tale in Jalopnik today about the iPhone 14’s new crash detection feature. He was riding his LiveWire One motorcycle down the West Side Highway at about 60 mph when he hit a bump, causing his iPhone 14 Pro Max to fly off its handlebar mount. Soon after, his girlfriend and parents received text messages that he had been in a horrible accident, causing several hours of panic. The phone even called the police, all because it fell off the handlebars. All thanks to crash detection.

Riding a motorcycle is very dangerous, and the last thing anyone needs is to think their loved one was in a horrible crash when they weren’t. This is obviously an edge case, but it makes me wonder what other sort of false positives we see as more phones adopt this technology.


A
External Link
Ford is running out of its own Blue Oval badges.

Running out of semiconductors is one thing, but running out of your own iconic nameplates is just downright brutal. The Wall Street Journal reports badge and nameplate shortages are impacting the automaker's popular F-series pickup lineup, delaying deliveries and causing general chaos.

Some executives are even proposing a 3D printing workaround, but they didn’t feel like the substitutes would clear the bar. All in all, it's been a dreadful summer of supply chain setbacks for Ford, leading the company to reorganize its org chart to bring some sort of relief.


E
TikTok
Spain’s Transports Urbans de Sabadell has La Bussí.

Once again, the US has fallen behind in transportation — call it the Bussí gap. A hole in our infrastructure, if you will.


J
External Link
Jay PetersSep 23
Doing more with less (extravagant holiday parties).

Sundar Pichai addressed employees’ questions about Google’s spending changes at an all-hands this week, according to CNBC.

“Maybe you were planning on hiring six more people but maybe you are going to have to do with four and how are you going to make that happen?” Pichai sent a memo to workers in July about a hiring slowdown.

In the all-hands, Google’s head of finance also asked staff to try not to go “over the top” for holiday parties.


E
External Link
Insiders made the most money off of Helium’s “People’s Network.”

Remember Helium, which was touted by The New York Times in an article entitled “Maybe There’s a Use for Crypto After All?” Not only was the company misleading people about who used it — Salesforce and Lime weren’t using it, despite what Helium said on its site — Helium disproportionately enriched insiders, Forbes reports.