South Korea tech giant Samsung has announced its quarterly financial report for the third quarter of the year. The company posted revenue from sales reaching KRW65.46 trillion ($57.3 billion) and operating profit peaking at KRW17.57 trillion ($15.4 billion) which are improvements over the company’s record in the same period last year.
The breakdown of the financial record shows the IT & Mobile Division which is responsible for the Galaxy smartphones, recorded a 10% YoY decline in sales to KRW24.91 trillion ($2.2 billion) compared with KRW27.69 trillion ($2.4 billion) in Q3 2017. This is despite recording a “solid flagship sales.” No doubt Samsung’s faltering sales in the mid-range/budget segments would have contributed largely to the decline.
On the other hand, the semiconductor business brought Samsung to a new quarterly high, backed by strong sales of memory chips, as well as demand for server and mobile memory. Despite the record, the company projects that its cash flow will likely decrease in the fourth quarter due to the end of a two-year boom in memory chips demand and an increase in competitive products from rivals.
The Korean giant also announced its plans for 2019 with a shift of focus to strengthening its competitiveness in emerging technologies like 5G, AI, and automotive electronics. This is in order to offset the reduction in sales and operating profit. The company also plans to expand its online sales and B2B relationship with built-in appliances and system air conditioners.