Samsung’s final Q3 profit score is pretty weak, but Galaxy Z Fold 4 and Z Flip 4 sales are ‘strong’

By Scott Marlette Last updated Oct 27, 2022

In just roughly two months of commercial availability, Samsung’s latest (and arguably greatest) foldable devices have generated more conflicting reports on their popularity around the world and in key specific markets than this writer can count on the fingers of one hand.

Unsurprisingly, their makers are trying to paint a much rosier picture today than all the analysts and industry pundits that predicted all doom and gloom for the tech giant’s Q3 financial results, and depending on what you choose to focus on, you can both smell the roses and feel the gloominess in the air.

Profits are down, revenue is up, phones are doing well

In a nutshell, Samsung’s latest quarterly financial report is the textbook definition of a mixed bag. On one hand, the company gained close to 11 trillion Korean won between July and September 2022, which converts to more than 7.5 billion US dollars and sounds pretty good.

This is the first year-on-year profit drop in almost three years, during which time the early stages of the COVID-19 pandemic and a major global chip shortage hurt essentially every Samsung business and division to a larger or smaller extent.

But those challenges apparently didn’t end up making as big of a negative impact as the current “macroeconomic uncertainties”, which in turn didn’t stop Samsung from reporting record third-quarter revenue of KRW 76.78 trillion, up from KRW 73.98 trillion this time last year and narrowly down from KRW 77.2 trillion in Q2 2022.

That’s… not bad, and the same goes for the mobile division’s KRW 32.21 trillion and KRW 3.24 trillion revenue and profit figures respectively. The former is a significant improvement compared to the same number from Q3 2021 while the latter is only slightly down, which feels like a win given the tough aforementioned macroeconomic conditions.

That finally brings us to Samsung’s Galaxy Z Flip 4 and Z Fold 4 sales, which are characterized as “strong” in comparison with their predecessors, crucially contributing to the “solid profitability” of the MX (Mobile eXperience) business.

What’s on the horizon?

The simple answer to that question is unfortunately “a lot of uncertainty.” Pretty much everything that Samsung makes, from phones to TVs, home appliances, displays, chips, and other components, tends to become… non-essential on the brink of a global recession, with consumers shifting their focus all of a sudden from getting the newest and hottest mobile device to simply putting food on the table.

In the short term, of course, Samsung expects “year-end seasonality” (aka holiday spending) to yield an increase in demand for smartphones and wearables, at least compared to Q3.

Samsung's final Q3 profit score is pretty weak, but Galaxy Z Fold 4 and Z Flip 4 sales are 'strong'

The Galaxy Z Fold 4, Z Flip 4, and the Galaxy S22 series of premium Android handsets are likely to “boost revenue” for the mobile business in Q4, with flagship demand somewhat surprisingly predicted to “remain solid” next year as well.

Samsung also aims to improve both the sales and profitability of its tablets in 2023 by “strengthening large-screen premium” models such as the existing Galaxy Tab S8 family. While this doesn’t explicitly confirm an impending Galaxy Tab S9 release, it seems safe to assume a roster of next-gen Galaxy giants is indeed in the pipeline and eyeing a commercial debut sometime next year.

Finally, Samsung has similar goals for smartwatches as well, planning to “maintain” the “high growth” of its wearable lineup despite “ongoing geopolitical issues and macroeconomic instability.” Did someone say substantial Galaxy Watch 5 discounts and killer Galaxy Watch 4 deals?

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