Samsung Electronics' profits for the third quarter of 2013, which is between July and September, has surged to another record high. The company said its operating income rose 25 percent to $9.4 billion, compared to a year ago, and beating market predictions of $9.3 billion, according to FactSet, a financial data provider.
Samsung said its third quarter sales rose by 13 percent to a record high of $55 billion. The Galaxy S4 maker did not disclose net income or go into details of its financial performance. The company plans to do so later this month.
Analysts said improved profit from Samsung's semiconductor business and robust sales of mid- to low-end smartphones were behind the record earnings. Slowing growth of high-end smartphones in developing countries was expected to put a dent in Samsung's third quarter profit, but that isn't the case here.
Sales of Samsung's flagship smartphone for 2013, the Galaxy S4, plunged after its first 3 months on the market. However, Samsung probably still managed to sell more phones during the period as consumers, especially in emerging markets, might have chosen to grab cheaper models such as Galaxy S3, instead of purchasing the Galaxy S4, according to Young Park, an analyst at Hyundai Securities.
Samsung is preparing for a possible record fourth quarter after recently launching the Galaxy Note 3 smartphone and the Galaxy Gear smartwatch that comes with a touchscreen and a handful of other smart features. The Galaxy Gear is Samsung's first smartwatch that is expected to go up against a similar offering from Apple in the near future.
Right now, Samsung is the world's largest maker of smartphones, TVs, and memory chips. Smartphone sales have accounted for around two-third of Samsung's profits in recent times, even as demand for personal computers and TVs remain lukewarm.
The launch of Windows 8.1 is expected to boost the sales of personal computers, but that's only if consumers are willing to accept the changes Microsoft have made to the operating system, along with the return of the Start Button.
