Samsung has released a pre-liminary report of its earnings release for Q3 2015, and it looks like the company is no longer bleeding sales. It looks like the strategy of reducing the price of flagship smartphones, coupled with stronger sales of midrange devices, have paid off for the South Korean giant.
Indications have it that Samsung’s net profit is at 5.46 trillion Won (about RM20 billion), up from 4.22 trillion Won (about RM16 billion) from the same quarter last year. The increased profits came as all of Samsung Electronics divisions recorded strong sales, including the previously flagging mobile devices division.
However, Samsung noted that the increased profits came at a cost. The company had stronger revenue from smartphone sales, but also recorded weaker profitability. Essentially, Samsung sold more devices due to the price reduction; but made less per unit sold. Most of the sales increase seems to have come from mid- to low-end devices, indicating that Samsung customers may no longer be looking to it for premium products.
Still, it is good news for the company that has seen its profits plummet over the last couple of years. There is no official statement about the earnings release yet, as the current document is based on results from K-IFRS. Samsung itself has yet to complete its full external audit, and the information it has shared is mainly for investors.