Samsung is estimating its third-quarter performance to sharply rebound after a soft performance for two straight years.
In its quarter ending Sept. 30, the company said its profits for the last three months increased by over 79 percent to hit $6.3 billion. With a 7.5 percent increase in revenue, the growth marks the company’s first year-over-year boost since its third quarter in 2013, which saw 26 percent growth, according to The Wall Street Journal.
The new wave of profits spur from an increase in demand for the smartphone maker’s chips and displays that are used in cellphone and gadget manufacturing. The growth comes against slowing cellphone sales, which have been deteriorating with stiff competition from Apple and Chinese smartphone makers that have been delivering better quality cellphones for a much cheaper price.
The boost in numbers from the success of Samsung’s chip unit likely contributed to almost half of the profits in the third quarter, an analyst said, according to WSJ. Whereas the increase in demand for displays from Chinese smartphone makers also added to its bottom line.
Despite the slow smartphone sales, the Korean company’s mobile unit performed comparatively better than a year before. The improvement comes after the company decided to cut down on its cellphone offerings and focus on perfecting its product strategy for select smartphones, WSJ reported.
To beat its closest competitor, Apple, Samsung launched new smartphones — Galaxy Note 5 and Galaxy S6 edge+ — in competition with Apple’s new releases — iPhone 6s and iPhone 6s Plus.
Samsung also recently introduced its very own mobile wallet called Samsung Pay, which just like Apple Pay processes mobile payments. Its new wallet service is expected to outperform Apple Pay with its near-universal NFC terminal acceptance.
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