Samsung Electronics is already one of the best-performing tech companies in the world, but the third quarter of this year marked the highest revenue for the company ever.
Between July and September, Samsung managed to generate 66.96 trillion South Korean won ($59 billion) in revenue as well as a staggering 12.35 trillion South Korean won ($11 billion) in operating profit. This is a record quarter for South Korea’s most profitable company, and in its financial report it detailed how it was able to navigate the disruption of COVID-19 while boosting interest in its products.
A key factor in the success of this quarter was the release of multiple flagship phones, including the Galaxy Note 20 line, the Galaxy Z Fold 2, and the Galaxy Z Flip 5G. While this series of releases has seen an immediate boost to profits, the company has already begun to prepare for a less profitable quarter at the end of the year.
With Apple releasing the iPhone 12 this quarter, Samsung’s profits will likely dwindle as it does not have a timely release to compete. Nonetheless, this strategy of capitalising on a quiet market has been effective, and the company will likely be comfortable with a smaller profit margin at the end of the year. Next year could see more successful quarters as the mobile landscape changes.
Huawei is declining in popularity and as a result, Apple and Samsung will likely absorb this new share in the market. However, Samsung will also be hoping its wide variety of electronics continue to perform to keep the business profitable in all markets.
Looking ahead, the company intends to bring 5G to more people, and if Samsung can repeat the success of the previous quarter, it will likely succeed in this mission.
