Smartphones or TVs may be Samsung’s most popular products, but they are certainly not the most profitable for the company. The South Korea electronics giant has announced its estimates for the third quarter of the year, and that data points to the company achieving the highest operating profit in its entire history. Samsung is set to reach 17.5 trillion won ($15.8 billion), up 20% from the same period last year. Not only that: revenues will also reach a record 65 trillion won ($57.3 billion), almost 5% more than last year.
The surprise of these results lies precisely in the products that have been the main protagonists of these revenues and profits. It wasn’t smartphones, and in fact in the second quarter those lost more market share than any other manufacturer with a Galaxy S9 and a Galaxy S9+ whose sales haven’t been as good as expected. TVs weren’t that succesful either.
In Samsung what shines is the memory division: this year the company became the largest semiconductor manufacturer in terms of revenue surpassing Intel, and that relevance has been maintained and has grown. In the second quarter alone, its memory business grew 33% in revenue while the mobile division decreased 22% in revenue. The trend had already been pointed out by the giant in the second quarter of the year, and has been maintained throughout this year.