Apple helps Samsung surge to record profits

Samsung Note 9

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Competition from cheaper Chinese made phones as well as higher marketing costs have also meant that an imminent rebound for Samsung's mobile unit is unlikely.

But the operating income has been supported by a good performance of tvs top of the range - in particular because of the football world Cup - and memory chips.

It was the biggest-ever quarterly profit in the company's history, surpassing the market expectations of around 17.2 trillion won (15.3 billion USA dollars).

Samsung, in a regulatory filing, said July-September profit was likely 17.5 trillion won ($15.5 billion), compared with an average forecast of 17.2 trillion won in a Refinitiv poll of 15 analysts.

The company did not provide detailed data for each business division; as with Samsung, finalized earnings will be made public later in the month. In addition to smartphones, OLED displays, and memory chips, the company has its tentacles spread into televisions, washing machines and dryers, refrigerators, IoT devices, and more.

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It has also promised to channel more spending into its manufacturing hubs, including a facility in Pyeontaek, and to increase investments in the production of memory chips, non-memory equipment and advanced manufacturing equipment.

However prices for its NAND chips, which are used for long term storage of data, have tumbled due to a saturation of supply.

Although Samsung will report high operating profits in its next quarterly results, Apple's iPhone XS series is one of the main reasons behind it. But that is seen dropping to minimal profit growth in the first half of 2019 followed by small profit declines in the second half.

Samsung shares rose as much as 1.8% in early trade in Seoul. The stock has fallen about 12% so far this year, weighed down by concerns about future demand for memory chips.

While the company hasn't yet broken down the finances behind this monster quarter, Daiwa Capital Markets analyst SK Kim claims that Samsung's work on the new iPhones has been a major profit driver.

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