Samsung Electronics has announced its Q3 performance results posting its highest quarterly revenue yet. The South Korean conglomerate had a turnover of KRW 66.96 trillion, its highest-ever quarterly revenue, in the July to September quarter.
The company attributes this to the reopening of the economies, which led to a significant increase in consumer demand from the quarter prior.
“Samsung Electronics was able to respond aggressively through flexible global supply chain management (SCM), reporting its highest-ever quarterly revenue,” the company said.
An increase in smartphone sales, consumer electronics, and efficient cost management emerged as the key drivers to the impressive results. Operating profit was up 52 percent from Q2.
Smartphone sales were up by nearly 50 percent, including Samsung’s flagship phones from Q2. This is in line with Counterpoint’s Monthly Market Pulse report, which revealed Samsung smartphone sales strongly rebounded in Q3 snatching the top spot from Chinese tech rival Huawei.
According to the report, Samsung controlled 22 percent of the entire market at the end of Q3, followed by Huawei and Apple with 16 and 12 percent.
Samsung’s memory business did perform better than expected despite a decrease in memory prices due to good demand for mobile and PC products.
The company’s Consumer Electronics Division posted better results thanks to a sharp increase in the sale of its premium TVs and appliances.
Samsung expects a decline in profit in the next quarter driven by increasing competition in the smartphone and consumer electronics market plus weakening demand for memory chips.
But looking forward to 2021, the company expects an increase in overall demand, yet uncertainties due to covid-19 remain.