News: After the news broke, shares jumped 8.7% – the most since January 2009.
Samsung said that it expects its operating profit to increase by nearly 80% in the most recent quarter despite weaker performance in smartphones.
The smartphone maker said that its operating profit for the period between July to September was Won7.3tn ($6.3bn) which is a 78% increase compared to the profit it recorded a year earlier.
The company’s semiconductor and display business is acting as a driving force for revenue generation despite the poor performance of its smartphones.
According to industry analysts, the company’s chip business has been lifted due to the demand for Apple’s iPhone 6s and Samsung’s own Galaxy Note 5, which use microchips made by Samsung.
Apart from Apple, Samsung chips are used by Guangdong-based Meizu Technology which launched a new smartphone using Samsung’s latest Exynos processor chip.
The company is also taking its display business seriously as it mentioned its plans to
sell curved screens to other smartphone makers, which is one of the key features of the new Galaxy S6 Edge, reported the Financial Times.
Samsung‘s operating profit from mobile devices is expected to rise by 24% in a year-on -year comparison making it the first year-on-year rise in seven quarters.
The company managed to launch the Galaxy S6 Edge Plus and Note 5 in August, before Apple introduced its new iPhones.
Samsung also tried to revive the sales of the premium Galaxy S6 by cutting the prices and by offering a $120 rebate to customers buying in installments.