Samsung has had an excellent quarter. The South Korean company benefited, inter alia, from the restrictions imposed by the United States on the Chinese competitor Huawei.
The maker of smartphones and memory chips, which closed in the three months to September, with an operating profit of 12.3 billion won, compared to over 9 billion, according to preliminary figures. With that result, the company also surprised the markets. Connoisseurs assumed, on average,a result of 10 billion won. The turnover of 66 billion won was also better than anticipated.
Samsung hasn’t reported a net result yet. Similarly, the revenues per Business Line have not yet been split up. That happens later this month when the company comes up with final results.
In the second quarter of this year, Huawei took over the leading position on Samsung’s smartphone market. The Korean company now seems to be on its way to becoming market leader, after the Chinese rival no longer has access to advanced components that go into its Android devices.
Samsung is also expanding its market share in India. This is partly due to the increasing tension between India and China, which makes consumers in India increasingly hostile to Chinese products. In addition, in recent months Samsung has been spending less money on marketing, which will benefit the company’s profitability.
Maurice Esma, a co-founder of EconomicInform is a freelance journalist with the expertise in international finance and corporate rights. The author can be reached by email email@example.com