Samsung Expects Rise of Smartphone Demand in the Current Quarter

Samsung expects shipments of mobile devices to rise in the current quarter. The Korean tech giant, however, warns that continuing macroeconomic instability and rising inflation could put downward pressure on average selling prices (ASP).

For 2023, the company expects smartphone revenue to improve year-on-year, led by growth in flagship models, and wearables to see double-digit growth, Kim Sung-koo, VP of Mobile eXperience (MX), said in an earnings call. The MX division’s revenue in July to September period grew 13.4% from a year earlier to KRW29.3 trillion ($20.7 billion). The result was driven by an 11.9% increase in smartphone ASP to $282. Operating profit fell 3.6% to KRW3.24 trillion. Smartphone shipments in the quarter fell 11.1% to about 64 million units; tablet shipments were flat at 7 million.

Kim added that amid intensifying market competition and persistent macroeconomic challenges, such as currency headwinds, the company will focus on profitability through flagship sales and efficient resource management. Ben Suh, EVP of investor relations, said its network business delivered improved results, led by overseas growth. It recently secured a deal with Comcast in the US.

On a group basis, Samsung’s net profit slipped 23.6% to KRW9.4 trillion, attributed to a challenging business environment marked by global inflation and sluggish demand for memory. Revenue rose 3.8% to KRW76.8 trillion, its highest ever in Q3. The company expects full-year revenue in 2022 to top its record set last year. The company’s board also approved the appointment of Jay Y. Lee as executive chairman.