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Samsung reports record profits driven by smartphone sales

Samsung has posted a huge 26 per cent jump in profit for Q3 2013 driven by smartphone sales and a recent surge in its memory chip business.

The figure of 8.24 trillion won (£4.7 billion) for the July to September quarter has been attributed to strong sales of Samsung Galaxy smartphones.

The net profit is up 26 per cent from the previous year, and Samsung is confident sales of smartphones will rise in the coming months.

“[Smartphone sales] will gain momentum due to year-end promotions over the holiday season and an improved line-up of mass-market smartphones,” said Samsung in a statement.

Operating profit for the quarter rose to a record 10.2 million won (£5926) during the quarter.

Samsung has posted record operating profit for six out of the seven past quarters due to strengthening sales in its Galaxy smartphone range, which currently includes devices like the Samsung Galaxy S4 and Samsung Galaxy Note 3.

The South Korean electronics company’s record profits were also boosted by its semiconductor business, which posted profits of 2.1 trillion won (£1.2 billion). This figure is double that of last quarters, and the highest seen for three years.

Revenue for the semiconductor division also rose over 12 per cent over the previous quarter to 9.74 trillion won (£5.66 billion).

Samsung supplies chips to other smartphone manufacturers like Apple and expects demand to only increase as 2013 draws to a close.

Due to a drop in demand in China and Europe, the company’s consumer electronics division saw profits decline. The division includes the company’s TV range.

Samsung is confident that the sector will return to success in the current quarter because of the Christmas period.

Next, read our pick of the best Samsung mobile phones.

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