Samsung posts record Q3 revenue as foldable phone sales surge
What you need to know
- Samsung has reported its Q3 2021 financial results.
- The company's revenue increased 10% YoY, while operating profit grew by 26% over the previous quarter.
- Samsung's mobile communications division also saw an improvement in earnings due to strong demand for new foldable models.
Samsung Electronics has announced its financial results for the third quarter of 2021, making a record KRW 73.98 trillion (about $63 billion) in revenue and KRW 15.82 trillion (about $13 billion) in operating profit. The company's quarterly revenue jumped 10% from a year earlier, while operating profit increased 26% from the previous quarter.
Samsung says the revenue figures were driven by favorable market conditions in the memory market, a robust increase in foundry and display sales, as well as solid performances of the finished product businesses.
The Memory Business unit achieved record quarterly shipments in the July to September period, while the DRAM division posted its second-highest revenue yet. Samsung's Foundry business also benefited from strong sales to global customers. The Display Panel Business saw a significant rise in earnings as major smartphone customers such as Apple launched their new products.
Samsung's IT & Mobile Communications Division posted KRW 28.42 trillion in consolidated revenue and KRW 3.36 trillion in operating profit during the July to September period. The increase in revenue has been attributed to a rise in smartphone sales compared to the previous quarter, led by the foldable Galaxy Z Fold 3 and Galaxy Z Flip 3 phones.
Samsung's best budget Android phones also contributed to the growth in sales, along with tablets and wearables. The company expects market demand to go up further in the fourth quarter due to strong year-end seasonality.
It aims to maintain a double-digit operating profit margin by expanding sales of premium flagships with the Galaxy Z Flip 3 Bespoke Edition. Samsung also plans to target replacement demand with its lineup of affordable 5G phones.
Samsung Galaxy Z Flip 3
The Galaxy Z Flip 3 is a gorgeous foldable that is much more durable than Samsung's previous-gen foldables. It also offers fast performance, 5G connectivity, and reliable battery life.
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