Samsung posts record quarterly results, announces leadership changes
Samsung is turning to fresh faces to lead its biggest divisionsBy Shawn Knight
Strong demand of memory chipsets for use in servers and flagship smartphones led Samsung to record earnings in the third quarter.
During the three-month period ending September 30, Samsung generated revenues of 62.05 won, or just north of $55 billion - an increase of 14.23 trillion won year-over-year. Operating profit, meanwhile, checked in at 14.53 trillion won which converts to around $12.92 billion. That's 9.33 trillion won more than the same period in 2016.
Despite the increase, however, Samsung noted that its display panel segment - the unit that makes OLED panels for other smartphone makers (Apple's iPhone X, for example) - saw a decline in earnings.
Similarly, the company's mobile business enjoyed strong shipments thanks to the launch of the Galaxy Note 8 and the Galaxy J series but earnings were down quarter-over-quarter due to what Samsung described as "higher sales proportion of mass-market smartphones." In other words, people opted for more affordable devices versus flagships.
Apple's decision to push the release of the iPhone X beyond the normal iPhone launch window likely also helped Samsung's mobile division during the quarter.
Samsung further said it was doubling down on its annual dividends, increasing the amount it shares with investors next year to 9.6 trillion won ($8.5 billion).
The South Korean tech giant on Tuesday also announced its next generation of leaders. Effective immediately, Kinam Kim will lead the display division, HS Kim will oversee Samsung's consumer electronics business and DJ Koh will take over the mobile division.
The company, as you likely know, has been rocked by executive scandal in recent memory. Some fresh faces could certainly help the company navigate the choppy waters.