Samsung Mobile Sales Increase In Q3 2015, But Profit Drops Following Price Cuts

Samsung beat expectations from analysts in Q3 2015, but with little help from its mobile business. The Korean firm’s semiconductor and display panel divisions were the stand-out performers that, alongside favorable currency rates, contributed to a $6.4 billion (7.39 trillion KRW) profit on revenue of $45.2 billion (51.68 trillion KRW).

The Samsung phone business, which has struggled to compete with Apple and lower-end players like Xiaomi, accounted for $23.3 billion (26.61 trillion won) of Samsung Electronics’ total revenue.

While revenue from phones rose by 2 percent quarter-on-quarter and 8 percent year-on-year, thanks to increased sales, its $2.1 billion (2.40 trillion KRW) operating profit was down 13 percent on the previous quarter as a result of price cuts made to the Galaxy S6 and Galaxy S6 Edge and an increase in sales of cheaper devices.

Samsung estimated that it will maintain the same revenue from smartphones in the next quarter, but it expects things to slow next year in line with the rest of the industry. That’s where its push into wearables and payments — Samsung Pay is now available on all major U.S. carriers, and is adding more bank partners — could come into play. Samsung hopes these businesses will pick up revenue to augment sluggish smartphone sales predictions.