Samsung Electronics announced on Oct. 8 that the operating profit of its IT and mobile (IM) division, which is in charge of the company’s smartphone business, is estimated at 2 trillion to 2.5 trillion won (US$1.67 billion to 2.09 billion) in the third quarter of this year. The figure increased up to 60 percent from the 1.56 trillion won (US$1.30 billion) of the previous quarter and is a similar level with the 2.22 trillion won (US$1.86 billion) a year ago.
Samsung Electronics’ Galaxy Note 10 has led the improvement in the firm’s performance. It is the first Galaxy Note phone that comes in two versions, the regular and the Plus, to attract not only male but female customers. The Galaxy Note 10 has sold 1 million units in domestic sales in just 25 days after its launch, the shortest period among the Galaxy brand phones.
In particular, the Galaxy Note 10 has pulled up the average selling price as it is a high-priced 5G phone that starts at 1,248,500 won (US$1,043) and tops out at 1,496,000 won (US$1,250).
The Galaxy A series, a line of mid-range smartphones, has also contributed to the sales growth. Samsung Electronics has added innovative technologies such as the multi-camera system and 5G to the Galaxy A series, targeting the emerging market.
Industry watchers expect that Samsung Electronics will continue to show an improvement in performance next year. This is because the 5G flagship phone and foldable phone market, which helps the company improve its profitability, keeps growing. 5G phones are expected to account for 56 percent of the total smartphone market in 2023, according to market research firm Gartner.
The shipments of foldable phones are also forecast to surge from 1.80 million units this year to 45 million units in 2023, according to Counterpoint Research. Samsung Electronics has started launching the Galaxy Fold in South Korea, the United States, the United Kingdom, Singapore and India in order last month, seeking to dominate the market in advance.