Samsung has reported a 56% decline in its operating profit for the third quarter but its smartphone business posted a 32% increase during the same period.
The operating profit of Samsung fell by 56% in the third quarter compared to last year due to slow demand for memory chips but the company remains positive due to strong smartphone business, posting a 32% surge in operating profit during the quarter.
The South Korean technology firm reported an operating profit of $6.7 billion for the quarter ending September, down from $15.1 billion during the same period last year. The company's sales also declined by 5% to $53 billion year-over-year but it improved by 10% from the previous quarter.
In a statement, Samsung said: "Third quarter profit fell sharply from a year earlier but improved from the previous quarter, as stronger smartphone sales and improved utilization in mobile OLED screens were weighed down by continued weakness in the memory chip market."
According to the company, its smartphone sales "improved significantly" this quarter due to strong sales and "robust shipments" of its latest flagship phone, the Galaxy Note 10, along with its Galaxy A series.
The company's smartphone business posted an operating profit of $2.5 billion for the quarter but it expects a weaker result for the rest of the year due to seasonal effects and economic uncertainties.
Samsung is seen to have benefited from the issues that plagued Huawei, the world's largest telecommunications equipment manufacturer and second largest smartphone seller. In May, the US government prohibited US companies from selling important technology and components to Huawei, forcing the Chinese firm to launch its latest flagship phone, the Mate 30, without key Google services.
Canalys analyst Ben Stanton pointed out: "Samsung has been quick to capitalize on Huawei's [US] problems, working behind the scenes to position itself as a stable alternative in conversations with important retailers and operators."
