Samsung announces big profits for Q3 2015, driven by components business

by: Matthew BensonOctober 29, 2015
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samsung galaxy logo mwc 2015 1

Samsung’s finances are in a favorable position, for this quarter at least. Earlier today the Korean conglomerate issued official figures for the Q3 2015 ending September 31st. Highlights include 51.68 trillion won ($45.55 billion) in consolidated revenue and 7.39 trillion won ($6.51 billion) in operating profit. This translates to a 6% quarter-on-quarter increase. The success is primarily a result of semiconductor and display panel sales.

Also mentioned was that operating profits increased 500 billion won ($440.6 million) from Q2 due to a favorable exchange rate. So beneficial was the weakened won that it translated to quarterly gains of approximately 800 billion won ($705 million), primarily from component sales.

Particular attention was paid to the fact that Q4 is not expected to yield results of this nature due to a belief the exchange rate will not warrant such a positive impact.

Samsung Q3 2015 Samsung Tomorrow

Display Focus

Flexible OLED displays CES 2014

Samsung plans to put more focus on V-NAND and streamlining its LCD TV production to improve next year’s cash situation, as well as significantly develop the display segment. In particular, the Display Panel segment “posted KRW 7.49 trillion in consolidated revenue and KRW 930 billion in operating profit for the quarter.” This was in part due to OLED panels, whose “earnings increased QoQ due to the release of new high-end smartphone panels for major customers, expansion of the customer base, and higher operation ratio.”

The OEM promised to improve cost competitiveness and reinforce mid-low end device line-ups in Q4. Additionally, the Display Panel segment plans to tackle new challenges, “developing new products to secure new growth engines….we will seek new applications including transparent and mirror displays, along with head-mounted and automotive display among many others.”

Mobile Segment

samsung galaxy note 5 review second batch aa (1 of 15)

The mobile division posted 26.61 trillion won ($23.4 billion) in consolidated revenue and 2.40 trillion won ($2.11 billion) in operating profit for the quarter. This was driven by sales of the Galaxy Note 5, Galaxy S6 Edge+, and both the Galaxy A and Galaxy J series. Profits actually decreased from Q2 due to price reductions on the Galaxy S6 and S6 Edge, and greater sales of non-premium hardware.

Tablet-related sales was reported as in-line with that of last quarter.

As of the time of writing, the stock value has increased approximately 1.3%.

Analysis

These figures are quite good for Samsung. There has been mounting speculation that its premium offerings this year have been unable to recapitulate the success of devices released in the past. In particular the fact that the Galaxy Note 5 has seen limited release, and all premium devices for 2015 to-date are devoid of both microSD support and a user-replaceable battery which has generated a visible outcry among some internet users.

Samsung-Galaxy-View-Hands-On-AA-(19-of-36)

This quarter also marks another period in which Samsung goes head-to-head with Apple, as the latter company released its iPhone 6S and iPhone 6S Plus just a few weeks ago. Q4 will likely be met with further pressure from competitors via the LG V10 and even the HTC A9.

Indeed Samsung’s success this period would appear to be largely based on sheer timing as the exchange rate is cited not only as a major contributor, but as a specific reason next quarter is not likely to offer as much good news. The clear listing of component and display-related business as driving the major sources of income further the belief that smartphones have become an omnipresent commodity of which progressively less people are willing to spend for cash-intensive purchases like flagships.

Samsung’s commitment to trying new things (see the Galaxy View above), as well as increasing investments shows that it has a solid plan in the path forward. Ultimately only time will tell how successful that manages to be.

  • Ben Kenon

    Really? BGR had me convinced that Samsung was seriously going out of business in like, a few days you guys OMG. Did you know that they sold exactly zero Galaxy S6 edge+ and Note 5’s in the countries where those phones aren’t available? #Doom

    • Degus Jacoby Pradana

      Samsung cant die, their money n support from their goverment make them the biggest company in south korean, n they still number 1 for marketshare in the world, u must worry w sony, htc, blackberry for mobile business.

      • Ben Kenon

        I know. But my Flipboard is so full of “Apple good, Samsung bad” stories that this story made me laugh. The diehard Apple fans love to pretend that Samsung is evil & about to go out of business.

        • Degus Jacoby Pradana

          Yep because apple is AMERICAAAA, and america always make all their rival looks bad

          • iKrontologist

            lol…. You got that right!!! :D ……Apple is the darling of Wall Street Investors. Who can’t invest in Samsung and take over control like they have butt plugging Tim Crook since Steve Jobs took over. So absolutely YES…. America is all about Wall Street Controlling Apple and helping to kill their competition by copying them, using their best parts and claiming because they have an Apple Logo brand stamped on them now…. that Apple invented EVERYTHING… Before the DAWN of TIME IMMORTAL! …..and the sad part about that is most brainwashed iDiotic Americans Believe It!!! xD

          • Diego

            Wall Street are a bunch of retards.
            Remember kids apple is doomed! doomed! doomed!.
            But when iPhone sells.
            Ammm thats because apple has a religion wich is not true.
            Bunch of fucking idiots is what they are.

        • Diego

          they are bad for giving us shitty touchwiss no wonder the note 5 needs 4gb of ram.
          But can’t multi task at all.

          • Ben Kenon

            I don’t know about that. The Note 5 has a split screen feature that can be very useful. I can have Maps and Music onscreen at the same time, and it works fine.

          • Diego

            Can’t keep apps running in the background for a long time.

          • Degus Jacoby Pradana

            If u use more than 6 apps it will just load the same page but for games it will back again to main screen, samsung said they do this for purposed due to increase battery life and make TW smooth, n yes in my experienced i have no lag at all n super smooth n i only use 5 app on the background ao its not problem for me, the problem is nerd people like just overreacted with it so make phone look really bad, i prefer smooth than lag.

          • iKrontologist

            Don’t tell us…. just let us guess you’ve never even used a Galaxy Note 5 and if you had you’d realize what a total DumbF*** You Really Are!!!

            Multitasking was practically invented for mobiles by Samsung. In that they are the only large manufacturer and we’re talking ones that actually make their own parts from materials they mine and assemble them in their own largest smartphone factories in the world. Newest one being in Vietnam!

            They are now the #1 Open Source Contributor in the World and Touchwiz you moron is the only UX designed solely on a Desktop UX with it’s far better multitasking than any other mobile ever dreamed of. That if you could even comprehend that multitasking and I’m talking REAL IBM STYLE… MULTITASKING isn’t just about suspending one task in order to be able to run another one like Apple does. Touchwiz was built along with Tizen on the Enlightenment SDK. Not the lame chopped and formed mobile UX Android runs at it’s base!

            Why do you think…. Galaxy Note Series from the day it launched in 2011…. has been blowing the phablet competition away in sales ever since. So freaking afraid is Apple of releasing iPhone Plus model sales that they just include them in all iPhone sales! hahaha….. and we’re still waiting for a competitor that can deliver S-Pen Stylus Features and Accuracy. I can tell you for sure Apple Pencil sure isn’t it! lol…..

            And it’s only available on iPads anyway. Along with their rip off of Samsung’s Multiscreen, drag n drop App to App Multitasking they still don’t have right or even on their CrApple iPhones!!! xD ……let us know when any other Phablet Sells over a 150 Million Note Clones and we’ll listen to your bull dung!!!

          • Diego

            I flashed my note 5 with stock android.
            Didn’t like touchwiss.
            Oh you mean split screen multitasking?
            I was talking about background multitasking.
            Can’t keep more then 6 apps running in the background.

          • iKrontologist

            If you flashed your Note 5 to Stock Android, that’d be a first and still be able to use Samsung Pay along with Samsung’s many more full system wide multitasking features in full Touchwiz! ….Touchwiz nearly invented Multitasking and the myriad of other features only available in Samsung’s Best Ever Touchwiz release to date. AND…. I’d like to know how you are using S-Pen Stylus without you getting a Touchwiz Mod in the first place. So see…. you may not know it, but if S-Pen Stylus is working and other Touchwiz only features, then you aren’t running Stock Android at all. If so it’s bound to include a Touchwiz mod! haha…..

          • Diego

            Meh don’t care about samsung pay.
            Its just not popular no what I mean?

          • iKrontologist

            Dude you just don’t get it. Because there is no Touchwizless Stock Android Mod available and never will be. There are only Custom Touchwiz Mods Available. So you are still running Touchwiz you fool. Let me explain this to you, because I have a friend who installed Darthstalker’s Note 5 Mod. Even if you have just one Touchwiz feature in hardware, it can’t work on any stock Android Mod. You See TOUCHWIZ isn’t just about the Software Features.

            Which can be described as the Window Manager or Desktop Environment for those who understand it as part of Linux Speak. But in Samsung’s Note Series case, that UX is custom designed for the their own hardware and features. Which include Exynos SoC chips. Which are still closed and proprietary and why XDA devs are trying to get Samsung to release the source code for it. Which they will never do. Because if they did, they’d be shooting themselves in their own foot. The hardware features (that include HMP core code written to the metal of Exynos cores) anyone could run their proprietary features, like S-Pen without Touchwiz UX Interface being used.

            So what you are most likely running is a custom touchwiz mod…. only they don’t like to include the Touchwiz part in the name, since they can possibly get sued!!! ….so they just call them Custom Mods!!! ……and believe me…. Touchwiz is still there. They can delete Samsung Pay and KNOX security, because it’s already worthless the moment you root the device! BUT THAT’S IT!!!

          • Diego

            Nope don’t have touchwiss features anymore.
            No S pen and no samsung pay.

          • iKrontologist

            You gotta be about the biggest dumb **** ever in the history of smartphones. I don’t doubt that inside your puny brain you somehow think your better off without the best Touchwiz release and Note 5 w/ S-Pen features ever. And it still remains the fastest most sold phablet in the history of large screened phones.

            Since 2011 people have been smart enough to figure that out. That’s why I doubt you even own a Galaxy Note 5 as you’d have the be the dumbest F*** ever in history of Cell phones, to pay that much for a smartphone you can’t even use all the best Exynos and Note series features on!!!

          • Diego

            Well damn not my fault for wanting the latest version of android.
            Other have flashed there note 5 already.
            Plus carriers put there own crap on top.
            So take a guess why me and others did it.

          • Diego

            Also don’t care about split screen multitasking.

          • Diego

            Don’t care about the s pen to much tho I like it.
            So now my note 5 is flying with stock android.
            Wake me up when samsung can make a touchwiss like stock android but with all of there features.

      • Diego

        For real because I sea there market share dropping.

        • Degus Jacoby Pradana

          Samsung n apple have decrease marketshare about 2% cause the chinese competitors, AA already show the article

        • iKrontologist

          Apple’s market share has dropped quarter after quarter. Even this quarter they have nearly half the market share of Samsung. Who is still #1 smartphone maker on the entire planet by a long shot!!! Go home and cry to your Mommy Tim Crook and Apple about that FACT!!! Samsung 24% and Apple 13% just in recent quarter. On the year Samsung has nearly 25% market share. Which is still nearly twice what Apple will end up with at still around 13% the last 4yrs!!! ahahaha….

      • iKrontologist

        Buddy it’s the other way around and the way the Korean Government has been treating Samsung it’s as if they think Apple is a Korean Company instead of Samsung!

        Samsung and I mean all of Samsung would still be in the Top 25 Economic Powers in the World, even if they were on their own island. Which they could plainly build. Just like they are now building the largest floating structure on the planet in the Prelude FLNG Project for Royal Dutch Shell! Samsung and all it’s affiliated companies are equal to more than half of South Korea’s GDP!

  • Degus Jacoby Pradana

    KRAKEN is back!!

  • Daggett Beaver

    I don’t see how this is possible. Everyone who comments on Android sites knows that the only way Samsung will be successful is if they make phones with removable batteries, microSD slots, and stock Android.

    • Degus Jacoby Pradana

      That just 1% nerd consumen who want that all feature, now people prefer stylish n fashion phone.

      • Diego

        that 1% is samsung’s hole customer base.

        • Degus Jacoby Pradana

          So its not a problem, see s5? Removable batt n sdcard w waterproof n look at the sell, doom!. Now look sale of new samsung, people love it n sell have good results. If u said cuz s5 ugly thats why they make sacrifice for s6, great design but cut those feature for better experience, n for my experience, i dont have to shame with my plastic design phone again cuz s6edge much way better design than iphone now

          • Diego

            Lol they are practically giving them away for free so they can consider them as sells.
            Why do you think they shipped more phones then apple yet no money?
            All that market share does not magically give you any money.

    • iKrontologist

      I think people miss the sarcasm in your comment! xD …..at least I hope. Since none of that has proved relevant. But I will add this bit of truth. There was good reason they did not include SD CARD SLOTS;

      Largely because they would have had to included two memory controllers in an impossible scenario in order to put now about to become obsolete…. UHS-I slots in new phone models. Either that or go ahead put new UHS-II memory slots with their extra row of pins in them at an extremely great expense. An expense that would have been passed on to us. Who aren’t about to go out and spend the $1000 for a UHS-II 512GB MicroSDXC Memory Card to work in it!!!

      The only manufacturers of anything that are including this disastrous new SDA membership’s new Licensed Hijacked to Hell Slot are ultra high end Camera makers. Like Samsung with NX 1 $3000 camera!!!

      If SDA members keep expect to get rich off SD memory standards licensing, there won’t be any SD card slots in anything! Because right now they are paying more in licensing than they are for the new MicroSDXC UHS-II memory slots. Which are the only slots that can utilize new UFS 2.0 Memory Controllers being backwards compatible with old legacy MicroSD Memory these fools want to use in their latest smartphones. And guess what???? Android as yet is just now working on putting support in Android to work with these new slots and memory cards. Tizen does just fine, but hey… it’s Open Standards all the way and a new standard was easy to include in it!!!

  • Diego

    Samsung loves dat iPhone.
    They want some apple money as well as TSMC.

  • Diego

    Where are all the samsung fanboys?

    • Degus Jacoby Pradana

      U jealous with samsung profit? Make your own god damn company if u dare

      Pussy

  • iKrontologist

    About as bad as every other critic of Samsung on the Web! haha…. Where an 80% increase in Profits YoY on the Quarter is just phoophoo’d away. like Apple’s chump change. Nevermind that half Samsung’s revenue came from mobiles. Not nearly the two thirds iPhones alone bring in for the iTrinket maker, but hey this keeps Samsung as #1 Smartphone Maker on the Planet for another year, selling 100 million more smartphones alone than rotten bitten apple logo folks based in Wall Street iDiot’s shareholders. Instead of the iTrinket Maker’s new Giant Space Donut in Cupertino. About to get drenched by record El Nino Flooding!!!

    Just ask the residents of Lake El Nino in South America what Apple can expect to take place there over their $10 Billion Dollar Space Donut this year. Sorry not my kind of Coffee (mud color) and Donuts for sure!!! xD

    Meanwhile true to form Android Authority is here again downplaying just Samsung Electronics Success. What if they had to include all of Samsung Group and Chaebol Holdings. Which also supply most of the parts and materials Samsung uses themselves. Let alone the Billions in Marketing furnished by Cheil Worldwide Marketing not even counted here. Or any of the some 70 other companies in just Samsung Group, minus somewhere around 50 or so Joint Ventures!!! haha…..

    That’s Profits paid back to themselves, as the only Totally Diversified Family of Global Conglomerates, are even close to being capable of doing on such a scale and it totally defies our perceptions of the difference between a Mickey Mouse iCon Artist and iTrinket Design House Only…. single company like Apple and something as huge as SAMSUNG…. in all Reality!!!

    • Diego

      Lol please do not act stupid smartphone shipments do not equal cels.
      Samsung is giving the s6 for free.

      • iKrontologist

        Where do you live? …..in a freaking Applewellian Brain Wash Factory??? lol… Because I’m sure you can’t buy a Galaxy S6, S6 EDGE or Plus and get it for Free anywhere in the World! Go back and cry in Tim Crook’s lab…. I’m sure he’ll love having you sucking him off with your ignorance and outrageously lame iDiocy!!! lol…. mwahaha…. You got to be a joke either that or an escapee from the Nut House!!!

        • Diego

          get a free samsung galaxy s6 with the buy of a samsung smart tv.
          Got my note 5 from a Carrier.
          Look around on amazon.
          Hell even carriers are giving them for free.
          Many promotions have a samsung phone in them.