Samsung hits record profit, chip margins provide a big boost

Editorial Note: Talk Android may contain affiliate links on some articles. If you make a purchase through these links, we will earn a commission at no extra cost to you. Learn more.

samsung-logo

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

Total
0
Shares
3 comments
    1. And just 3 short years ago, virtually everyone was saying almost the exact same thing of Apple. What a tool.

      1. The difference is, Samsung will fall much easier. Samsung customers are more likely to make other choices in the future.

        I would consider Google and Apple to be similar in that regard. Google is becoming more Apple like every day. And right now, there are fewer other choices than ever before (well maybe not in number, but in having a reasonable choice).

Leave a Reply

Your email address will not be published. Required fields are marked *

Previous Post

Android 4.3 Jelly Bean update schedule for Samsung devices leaks online

Next Post

Does bowling ball tweet hint at October 28 KitKat launch?