It's hardly surprising to hear that the Galaxy Note 10 series has outsold the Galaxy Note 9, given the reception it got. Samsung officially confirmed this today in its full earnings report for the third quarter of this year.
The mobile division's earnings were up significantly compared to Q2 2019 due to robust shipments of the Galaxy Note 10. Revenues hit almost $25 billion with operating profit surging 32 percent from Q3 2018 to $2.5 billion. The Korean giant also flexed its technological prowess in the third quarter by releasing more 5G handsets and launching the Galaxy Fold.
More foldable smartphones promised for 2020
This was largely due to the Galaxy Note 10 in addition to a more diverse product range. Samsung released a lot more devices this year than it has over the past few years. It's increased focus on the entry-level segment has also contributed to the higher profitability.
Samsung mentioned that in the third quarter of this year, the Galaxy Note 10 outsold the Galaxy Note 10. It also posted a double-digit growth in volume, which was to be expected as there are two separate models of the Galaxy Note 10. The completion of the A series lineup transition allowed for cost reduction which led to improved profitability. The company doesn't break down sales figures for each device so there no information on which entry-level and mid-range phone has done the most business.
It now expects the market to cool down in the fourth quarter of this year. Mobile demand traditionally declines towards the end of this year as flagship models lose their luster and fans hold off on purchases as new high-end models are expected in a few months. However, Samsung does expect its affordable models and the Galaxy A series to maintain solid sales. It does believe that the division's profitability will decrease as demand for the Galaxy Note 10 slows. Customers who really wanted to buy one have bought one already. Marketing costs will increase towards the end of this year, particularly during the holiday season.
Samsung predicts that demand for 5G smartphones is going to increase in 2020 as 5G networks launch in more countries across the globe. The mobile market will remain highly competitive overall. Samsung's plan is to offer more 5G devices and foldable smartphones to improve its competitiveness. It has already provided a glimpse of what its next foldable smartphone might look like.
