Samsung's sales fell dramatically in the third quarter

Operating profits reach 1.8 billion dollars

Samsung Electronics’ operating profits fell by 80 percent due to the prolonged economic slowdown, but its semiconductor business reduced its losses due to increased demand for premium memory chips.

The Korean giant of memory chip and smartphone manufacturing in the world recorded operating profits of 2.43 trillion won (1.8 billion dollars) for the period from July to September on a consolidated basis, down 78 percent from 10.9 trillion won (8 billion dollars) for the same period of the previous year, according to a regulatory statement.

Compared to the previous quarter, its quarterly operating profits more than tripled from 668.5 billion won (490 million dollars).

Its sales decreased by 12.2 percent to 67.4 trillion won (50 billion dollars), and its net income decreased by 37.8 percent to 5.84 trillion won (4.3 billion dollars) compared to the previous year. Its operating profits were 32.6 percent higher than the average estimates, according to a survey conducted by Yonhap Infomax, the financial data company affiliated with Yonhap News Agency. The net profit estimate was not available.

Chip division records losses for the third quarter in a row

Samsung’s device solutions division recorded losses of 3.75 trillion won (2.8 billion dollars), in losses for the third quarter in a row. The cumulative losses of the chip business amounted to 12.7 trillion won (9.4 billion dollars) for 2023.

Its total sales amounted to 16.4 trillion won (12 billion dollars) in the third quarter.

In the first quarter, Samsung’s chip division announced its first financial loss in 14 years, as chip inventories grew significantly amid declining global demand. Before that, the division recorded losses in the first quarter of 2009.

But Samsung pointed to some positive expectations that the chip cycle had reached its lowest levels.

Its memory chip business saw a decrease in its losses thanks to increased sales of premium products such as high-bandwidth memory and DDR5 memory.

Samsung's profits from foldable phones

Samsung said its mobile phone division achieved sales of 44.2 trillion won (33 billion dollars) and operating profits of 3.7 trillion won (about 2.7 billion dollars) thanks to increased sales of its new foldable smartphones, including “Galaxy Z Flip 5” and “Galaxy Fold 5”.

Samsung launched these phones in August, and they received great demand from consumers looking for new and innovative experiences in smartphones. These phones were distinguished by their elegant design and advanced features such as the dynamic screen, the powerful battery and the amazing camera.

Samsung expected strong demand for these phones to continue in the fourth quarter, with expanding distribution and promotion in global markets.