Everything seems to be going great right now for Samsung. Last year’s Galaxy S III bested Apple’s iPhone in a touchscreen accuracy test, and the company has apparently sold more than 40 million Galaxy S 4 handsets. Now, Q3 of 2013′s financial numbers have come in. Samsung recorded a record profit of $7.76 billion. That is a lot of cash. While smartphone margins are plateauing, they have found success in chips due to their margins almost doubling since last year. According to The Wall Street Journal, “the importance of Samsung’s chip unit–comprised of memory and logic chips–is being highlighted as it now accounts for roughly one-fifth of its total operating profit.” That is a very impressive increase in both margins and growth. Samsung may put more of a focus on their chip business if margins continue to grow.
Amongst all of the cash that Samsung is sitting on, no one knows what they will do with it. The easy answer would be to acquire other companies, possibly to assist the launch of their inevitable wearable products.
Source: The Wall Street Journal