Galaxy Note 10 sales boost Samsung profits

Samsung Galaxy Note 10
(Image credit: TechRadar)

Samsung is predicting better than expected Q3 results thanks to strong sales of the  Galaxy Note 10 and signs that its memory chip business is recovering.

The Korean technology giant has endured a number of difficult quarters in which operating profits have fallen significantly. The company’s latest trading profit suggests operating profit will fall 56 per cent to 7.7 trillion won (£5.3 billion) while revenues will fall 5.2 per cent to 62 trillion won (£42.2bn).

However these figures have beaten some estimates, while analysts are citing encouraging metrics for the world’s largest mobile phone manufacturer.

Samsung results

Reuters says the performance of the Samsung Galaxy Note 10 has been encouraging, with strong sales in Europe and North America. In South Korea, the 5G edition has sold more than one million units – making the device Samsung’s fastest selling flagship handset ever.

Sales have also been boosted by the ban on US companies from supplying Huawei with technology. Huawei devices were absent from the launch of 5G in the UK for example, while the upcoming Mate 30 will shop without access to key applications or the Google Play Store. There is evidence that Samsung is making gains in the mid-range segments too.

However In addition to being the world’s largest mobile phone manufacturer, Samsung is a major supplier for its competitors – including great rival Apple - who rely on the company for components. This means it is particularly susceptible to a lack of growth in the market. Huawei is also a major customer, meaning its struggles could impact Samsung.

The company will hope that demand for 5G devices and new form factors such as foldables like the Samsung Galaxy Fold will improve performance in both markets.

Samsung has also struggled with declining prices for memory chips, a market which is responsible for two thirds of the company’s profits. It is believed the market will stabilise next year as data centre customers increase spending.

Via Reuters

Steve McCaskill is TechRadar Pro's resident mobile industry expert, covering all aspects of the UK and global news, from operators to service providers and everything in between. He is a former editor of Silicon UK and journalist with over a decade's experience in the technology industry, writing about technology, in particular, telecoms, mobile and sports tech, sports, video games and media.