Samsung Electronics will say today that its July to September operating profit likely hit $6.8 billion, a record for a South Korean company, as strong sales of its Galaxy smartphones more than offset reduced orders for chips and screens from Apple, the group’s main rival and leading customer.
But a run of four straight record quarters will come to an end in the current three-month period to December as Samsung spends more on marketing to counter Apple’s latest iPhone and other rival products in a crowded $200 billion-plus global smartphone market.
This year’s expected profit of 28 trillion won ($25 billion) will also trigger higher performance-related payouts to many of Samsung’s 206,000 staff early next year. And Samsung may have to set money aside this quarter if it fails in an appeal to overturn an Aug. 24 US court ruling that awarded $1 billion in damages to Apple for patent infringements.
From levels just ahead of that ruling, Samsung shares have since risen 6.2 percent, while shares in Apple have gained just 1.2 percent.