South Korean multinational electronics company Samsung Electronics Co. has posted their most recent quarterly report that showed a profit beating many analysts’ estimates on the companies future growth.
Wealth Management Company Radford Taylor Partners had noted that its research department had highlighted that the net income for Samsung had increased to 13 trillion Korean Won ($11.4 billion USD) in a three-month period that ended in September.
Samsung noted that it was experiencing “weak seasonality” in regards to its chip market for the upcoming fourth quarter, and even said that earnings would decline.
Evaluating the upcoming demand for memory is the backbone of Samsung’s strategic business plan; with its semiconductor division providing the biggest amount of profits for the company followed by its other ventures in smartphones and display panels.
With the increasing pressure of cutting its costs within its memory production division, manufacturers alike to Samsung constantly invest on plants and new equipment.
“Suppliers need to pick up the pace and react to market supply and ensure demand is always being outstripped to avoid declining prices up to 25 percent in a year.” said Charles Murphy, Director of Private Clients at Taiwanese Wealth Management Company Radford Taylor Partners.
Recent prices in Samsung shares rallied as much as 2.4 percent in early trading sessions as its operating profit and sales were on target with its preliminary numbers released earlier this month.
Radford Taylor Partners analysts noted that Samsung are still the leading handset maker in the world, while it has been trying to fight off new competition in Asia from Chinese rivals such as Huawei and Oppo and of course Apple Inc., who has control of the premium device market.
The company is South Korea’s biggest exporter of electronic goods and even stated that the in coming years they are investing more money in semiconductor plants and even building the largest smartphone factory in the world.