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Strong phone sales help Samsung beat forecasts

Credit: Reuters Studio
Published on October 8, 2019 - Duration: 01:17s

Strong phone sales help Samsung beat forecasts

Strong shipments of Galaxy Note 10 smartphones are limiting forecast profit falls at Samsung Electronics, raising hopes it is getting back on a growth track after years of moribund sales.

Julian Satterthwaite reports.

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Strong phone sales help Samsung beat forecasts

It's known as the world's biggest maker of smartphones.

But Samsung's business goes a lot further than fancy handsets - and so do its problems. The South Korean giant gave a trading update update Tuesday (October 8).

It says operating profit will tumble 56 percent in the third quarter.

That's actually better than forecast.

But chips remain a big problem.

Prices for semiconductors have tumbled amid weak demand.

They fell around 25% in the first quarter of this year.

Though analysts see signs that things are at least getting less bad.

While chip prices are still falling, the percentage decline is forecast to slow to single digits in early 2020.

Meanwhile, Samsung's mobile phone business is looking a whole lot happier.

The firm says its new Galaxy 10 smartphones are selling strongly, and it has 5G and folding handsets hitting the market.

Rival Huawei has inadvertently lent a hand.

Its sales have stumbled following the imposition of U.S. sanctions.

They may prevent it selling phones fitted with Google apps.

Samsung is all too happy to mop up any consumers now hesitant about the Chinese brand.

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