Today, Samsung came of age. Five years ago Sony was the King Pin of the consumer electronics industry and Samsung was an up and coming Korean manufacturer struggling to get traction, up against the mighty Japanese brand. Five years on it is Samsung who has delivered a whopping $3.5 billion dollar profit Vs Sony who is tipped to report over $1.3 Billion in losses later today.
Samsungs third-quarter $3.5 billion profit has more than tripled from a year ago and is the Company’s biggest ever quarterly profit.
Contributing to their success was memory and processor deals with the likes of Apple and the soaring success of their TV operations.
Unlike Sony who are losing money in the Playstation, Vaio PC, Bravia TV and Camera of Camcorder divisions Samsung’s has report record results across all of their divisions.
Their smallest gain was in their mobile phone division, which is the company’s largest by revenue.
Samsung’s processor business achieved an operating profit margin of 17.6%. TV shipments grew by 24%
A new line of premium-priced LCD-TVs with very thin panels was introduced at the beginning of this year this boosted Samsung sales with the Company achieving an operating profit margin of 16.9% in the consumer electronics division compared with a loss 12 months ago.
Samsung’s net profit in the third quarter last year was 1.22 trillion won. Its previous record net profit was 3.14 trillion won in the first quarter of 2004, the year that turned out to be its most profitable.
Executives said Samsung’s business would remain strong through the fourth quarter. Revenues were $20.9 billion, compared with 19.26 trillion won a year ago.
The company’s mobile phone business reported an operating profit margin of 7.7%, up from 7.2% a year ago.