From EETimes: Samsung Electronics, the world’s largest maker of smartphones and the second-largest chipmaker, said strength in its semiconductor business offset the impact to its mobile phone business caused by exploding batteries in its flagship Galaxy Note 7 products.
South Korea’s largest company said today in a press statement that operating profit for the third quarter this year was 5.20 trillion won ($4.6 billion), down 2.19 trillion won from the same period a year ago. Samsung originally forecast a 7.8 trillion won profit but cut its expectations to reflect losses from the cancelation of the Note 7 smartphones.
The company’s mobile product earnings plunged 98 percent from a year earlier to the lowest since the fourth quarter of 2008. Global demand for smartphones fell for the first time starting in the first quarter this year. Samsung originally counted on its Note 7 smartphones taking more market share away from the Apple iPhone.
Samsung’s chip division posted a 3.37 trillion won profit for the third quarter, its highest since the same period a year ago. Samsung’s semiconductor business grew on demand for memory chips in high-performance mobile and server products. Samsung said demand was strong for its 14nm foundry products as well as mid-to-low end SoCs and image sensors.
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