Samsung Q3 Profits Are Down – Smartphone Business Still Booming
Samsung’s Q3 profits aren’t doing so hot. The South Korean manufacturer reported a 13 percent drop in their fall quarterly profits. The fall was lessened thanks to their smartphone division which saw profits double from a year ago to a record high of $2.3 billion, 60 percent of Samsung’s total profit. Samsung still hangs on to the No.2 spot for largest handset manufacturer just under Nokia.
It’s Samsung’s bread-and-butter chip business that is really hurting the company. Chip profits dropped to 1.59 trillion won, half of what they were last year. Oh – and don’t forget Samsung’ display busniess which also posted losses for a third consecutive quarter. Seems nobody is buying those super slim (and pricey) LED TV’s.
This should give Samsung a good idea of where to invest their won (“moar Android phonez”) and where consumers are spending their hard earned money. Even in a tough economy, consumers seem to hold more value to smartphones, which are essentially entertainment Swiss Army knives (games, video, music, web) dishing out more bang for the buck.
[Via Reuters]