Chip division gives Samsung good numbers despite lower smartphone revenues

Samsung recorded good figures in the past quarter, thanks to good sales of components such as NAND, Dram and OLED screens. The sale of smartphones is going less well, according to Samsung, especially the lower segment.

Last quarter’s revenue was the highest ever Samsung has achieved in a third quarter. This is partly due to the Semiconductor division of Samsung Electronics, which achieved a turnover that was more than 24 percent higher than a year ago. It is the department of Samsung that makes parts such as nand memory and dram.

The Display Panel division also recorded good figures. The turnover of the business unit that makes LCDs and OLED screens was 24 percent higher than in the same period last year. Samsung only makes small OLED screens for phones and tablets. Apple, among others, buys OLED screens from Samsung for its iPhones. This year Apple released two iPhones with OLED screens, so presumably the manufacturer purchases more OLED panels than last year, when there was one iPhone with an OLED screen.

In the IT & Mobile Communications division, which includes smartphones from Samsung, the figures were disappointing. The business unit’s revenue was 11 percent lower than last year. Samsung says this is because it has sold fewer phones in the lower segments. According to the manufacturer, sales of top models went well. Samsung does not disclose details about numbers.

Samsung Electronics’ total revenue for the quarter was 65.56 trillion Korean Won. Converted that is 50.6 billion euros. Turnover was thus 5.5 percent higher than last year. The group made a profit of 17.57 trillion Korean won, converted about 13.6 billion euros. Earnings were 20.9 percent higher than in the comparable quarter last year.

Samsung Quarterly Results – CE (Consumer Electronics), IM (IT & Mobile Communications), DS (Device Solutions), DP (Display Panel)