The performance contrasts with a year ago, when Samsung reported its highest-ever quarterly profit in the third quarter of 2018 on the back of unprecedented demand for its flash memory chips, which are mostly used in mobile devices such as smartphones and tablets.
The preliminary figure for operating profit was 7.7 trillion won (6.4 billion USA dollars) in the July-September quarter, topping market expectations of about 7.1 trillion won (5.9 billion US dollars).
Sales of Huawei's Honor smartphones, which are mainly in the $180-$249 price band and accounted for a large portion of sales outside of China, had dropped significantly since March, allowing Samsung to boost sales volumes of its new A series, according to Counterpoint.
Analysts said that Samsung benefited from US sanctions on Huawei Technologies Co Ltd [HWT.UL] that effectively bar USA firms from supplying its Chinese rival. Huawei devices were absent from the launch of 5G in the United Kingdom for example, while the upcoming Mate 30 will shop without access to key applications or the Google Play Store.
The billionaire heir won't seek to extend his three-year term on the board of the tech behemoth when it ends 26 October, but will remain at the helm of the world's largest chip and smartphone maker, the person said, asking not to be named because of the sensitivity of the issue. On-year, operating profits were down 56 percent, while sales were down five percentmainly on lower memory chip prices.
Samsung is the world's biggest maker of semiconductors and smartphones, but it has struggled with falling prices for DRAM and NAND memory chips since late a year ago. Samsung's chip business has been its biggest moneymaker in a while, so the lack of demand for memory chips worldwide is hurting the company finances. In preparation for that report, the company released an official forecast for investors that gives us a little bit of an idea of what to expect.
The company recently released limited data in yesterday's regulatory filing ahead of the detailed release of its earnings figures later this month. Articles appear on euronews.com for a limited time.
Kim Yang-jae, an industry analyst of KTB Investment & Securities, estimated that Samsung's third-quarter operating profits from the IT and Mobile Communications division and the display business would increase to 2.5 trillion won and 1.2 trillion won, respectively, from 1.6 trillion won and 700 billion won in the second quarter.