Samsung's earnings report for the third quarter of 2015 reveals that its sales have reached $45.1 billion which is a 9 percent increase from what it has achieved for the same period of last year.
Net profit was recorded at $4.8 billion (5.5 trillion won) which has also increased from last year by up to 29 percent. Likewise, operating profit was recorded at $6.46 billion.
Samsung said that the increase in sales resulted from a strong demand for its chips and flat-panel displays and that the profits [pdf] were somehow influenced by the weak local currency of its home country.
Being a major manufacturer of chips and displays, Samsung is a company to reckon with in terms of memory chips and OLED display panels. The company uses the latter on its own products and also sells them to rivals as a result of a strong demand.
Samsung also noted that the bulk of its success in the recently concluded quarterly report came as a result of favorable exchange rates wherein gains have reached around $704 million (800 billion won). However, the company does not see it as creating a favorable effect in the next quarter and has even speculated its earnings to drop quarter-over-quarter in Q4.
"In the fourth quarter, the company expects earnings to decline from the earlier quarter, as it does not expect the foreign exchange rate to have a positive effect in the fourth quarter," said Samsung.
As for its smartphone business, the company reported a significant increase in sales which it had attributed to the early launching of its flagship devices, the Galaxy S6 Edge+ and the Galaxy Note 5. The strategy, which aims to gain an edge over rival Apple, seemed to have worked successfully that others are speculating the company will do the same when it launches its next flagship device. Speculated to be known as the Galaxy S7, the device is said to launch a month earlier than the usual in January 2016.
According to the Q3 report, the strong shipment growth of its smartphones was driven by new models which, apart from the S6 Edge+ and the Note 5, also include the Galaxy A8 and the Galaxy J5. Profitability had declined which the company had attributed to the price adjustment of the Galaxy S6 and to the product mix change.
