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Home / Business / Samsung stock rises on strong smartphone sales

Samsung stock rises on strong smartphone sales



The South Korean technology giant reported Thursday's operating profit of 7.8 trillion Koreans won ($ 6.7 billion) for the quarter ending September.

That's down from 17.57 trillion Koreans won ($ 15.1 billion) for the same period a year ago. Sales fell 5% to 62 trillion won ($ 53 billion) from the same period last year, but improved 10% from the previous quarter.

"Third-quarter profits fell sharply from the previous year, but improved from the previous quarter as stronger smartphone sales and improved utilization in mobile OLED displays were weighed down by continued weakness in the memory chip market," the company said in a statement.

Shares in Samsung ( SSNLF ) were up 2% in morning trading in Seoul.
Samsung's profits have slipped over the past year, mainly due to a decline in the memory chip industry.
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The company said that smartphone sales "improved significantly" this quarter. strong sales and "robust shipments" of Samsung's latest flagship phone, the Galaxy Note 10, along with its Galaxy A series.

Samsung's smartphone business had an operating profit of $ 2.92 trillion ($ 2.5 billion), up 32% from a year earlier. But the company said it expects weaker sales of smartphones for the rest of the year, citing seasonal effects and financial uncertainties.

Samsung has taken advantage of the current problems facing Huawei, the world's largest telecommunications equipment manufacturer and number 2 smartphone seller. [19659010] Washington put Huawei to a blacklist in May in May, preventing US companies from selling vital tech and components to the Chinese tech giant.

US ban forced Huawei to launch its latest flagship phone, Mate 30, without important Google services. Without access to popular apps like Google Maps and YouTube, Huawei phones become much less attractive to international users.

Canalys research company said in August that Samsung had a 40% market share in Europe, the highest in five years.

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"Samsung has been quick to leverage Huawi's problems [US] and worked behind the scenes to position himself as a stable alternative in conversations with key retailers and operators, "said Canalys analyst Ben Stanton at the time.

The US ban also marked Huawei's ambition to dominate the global 5G smartphone market.

As the market settles for the next generation of ultra-fast wireless technology, Daishin analysts predict that Samsung will have the takeover "as practically the only 5G smartphone manufacturer in the world outside of China."

Samsung said it expects consumer demand for 5G devices to increase by 2020 as 5G networks expand globally.

"The company plans to offer more 5G units and collapsible products to improve competitiveness and build a foundation for further growth," it states.


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