Devices major Samsung is set to post record earnings of $9.4 billion in July-September, while its smartphone rival HTC has posted around $100 million loss in the third quarter.
Samsung Electronics on Friday said it estimated its July-September earnings rose 25 percent to $9.4 billion as a strong recovery in memory chip prices helped counter a slowdown in the South Korean company’s smartphone business.
The Galaxy S4 smartphone maker said its third-quarter operating profit likely increased to 10.1 trillion won ($9.4 billion). The South Korean firm estimated its third-quarter sales rose to 59 trillion won, versus a market forecast of 60 trillion won.
On the other hand, Taiwan’s HTC posted a quarterly operating loss of T$3.5 billion ($120 million) on Friday as sales tumbled by a third from a year earlier.
HTC is facing troubles due to Samsung and Apple. Nokia, which faced similar fate, will move into the hands of Microsoft for $7.2 billion. On the other hand, BlackBerry is in talks with its single largest shareholder Prem Watsa and Group for a takeover.
HTC booked a net loss of T$2.97 billion ($100 million) against a net profit of T$3.9 billion in the same quarter last year.
Meanwhile, a client note from Fubon Securities said HTC would team up with a Chinese IT manufacturer either through a potential cooperation deal or merger.
Samsung Electronics, which has reported record earnings every quarter since 2012 except the first three months of 2013, is expected to post another round of record earnings in the current quarter as chip prices extend their gains.
According to Reuters, Samsung’s mobile devices business, which accounts for around two-thirds of the company’s total profit, is struggling with weakening growth as the high-end segment of the smartphone market saturates, pushing sales of its flagship Galaxy S4 lower.
Analysts estimate Galaxy S4 sales dropped to around 16 million sets in the third quarter from some 20 million in the two months following the smartphone’s late April launch.
Profits at the mobile division may face further pressure in the current quarter as the company increases marketing expenses in the run-up to the year-end holiday shopping season.
