It is a time of economic results and the last to publish its figures has been Samsung Electronics, the company that has had so far a complicated 2019 year. The year began with a 60% drop in profits and a slight recovery during the second quarter.
Green sprouts continue, with net benefits of 7.78 trillion won. It is still 55.72% less than during the same quarter last year, but at least there is an increase of 17.88% compared to the second quarter of 2019, and the Samsung Galaxy Note 10 would be the culprit.
Semiconductors do not take off
Traditionally Samsung's semiconductor division has been the golden egg hen of the company. In the third quarter of 2017 this division achieved a net profit of 10.9 trillion won, while during the same period of 2018 they were 13.65 trillion. This is approximately double the total benefits during this third quarter of 2019.
But nevertheless, this started to change during the last quarter of 2018 and became evident at the beginning of the year. Samsung blamed a lower demand for NAND and DRAM chips due to macroeconomic uncertainties, seasonality and inventory adjustments. During this third quarter, Samsung says the demand for NAND and DRAM improved thanks to the new mobile launches.
The screen division For its part, it reaps a 56% increase in profits compared to Q2 in 2019 and 6.36% compared to the same quarter a year ago. They are still "only" 1.17 trillion won in profits, but everything helps. The reason for this increase is a greater demand for mobile OLED panels.
The Galaxy Note 10 pushes the benefits
In the IT & Mobile division, which includes revenues and benefits from the sale of devices, Samsung entered 29.25 trillion won which resulted in 2.92 trillion won in profits. This is 39.20% of the profits of the quarter.
These 29.25 trillion won is a figure that has not entered for a long time said division. We have to go back to the second quarter of 2017 to have a higher figure. The 2.92 trillion in profits were also not seen since the first quarter of 2018, when the company reaped 3.77 trillion won.
Behind these figures is the Samsung Galaxy Note 10 and its "strong demand" in addition to greater profitability. Samsung does not go into exact details, although it says that Note 10 surpassed its predecessor in double-digit growth figures. The truth is that the entire division obtained 31.53% more profits than during the same period in 2018.
For its part, series A, which partially boosted the recovery during the second quarter of 2019, contributed its grain of sand after Samsung completed the transition to the new model.
By 2020, Samsung expects greater demand for 5G devices while the network is being deployed globally. His plans go through offer more 5G and foldable devices to improve their competitiveness and boost growth.
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