In spite of a slowdown in cell-phone sales, Samsung Electronics Co. still roared to a 46-percent profit compared with the same period last year. Much of its boost came from its chip division.
But the result showed the company did not continue the overall momentum it triggered in the first half of the year.
The handset and memory chipmaker said it earned $2.42 billion for the third quarter in contrast to $1.6 billion in the year-ago period. This showing topped analysts’ estimate that figured in price drops in computing its anticipated margins.
It earned $1.7 billion from its semiconductor business in the third quarter, amounting to a 74-percent jump from last year and accounting to 71 percent of the company’s overall operating profit. The sector also accounted for 48 percent of Samsung’s overall operating profit in the previous quarter.
Its handset and telecom equipment division did not fare as well with $526.3 million in earnings, down 19 percent from the year-ago period. The sector suffered a 13-percent drop in operating margins from 19.9 percent in the year-ago period and 16.1 percent in the second quarter, according to the company.
The vendor said it sold 22.7 million cell phones in the third quarter, amounting to a flat growth compared with the previous quarter, but a 15-million-unit leap from the year-ago period. Samsung ranks third in handset market share in the world, following Nokia Corp. and Motorola Inc.
