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Samsung reports first profit growth in two years thanks to Apple

By Cookie Monster - on 30 Oct 2015, 8:00am

Samsung reports first profit growth in two years thanks to Apple

 Samsung's chip business contributed nearly half of the company's profit in Q3 2015. <br> Image source: Chipworks

For the first time in two years since the Galaxy S4, Samsung today reported its first profit growth and Apple is believed to be the main force behind it.Thanks to Apple, Samsung's semiconductor and display businesses contributed most to the company's revenue.

Overall, Samsung made US$6.42 billion in operating profit for Q3 which is an increase of 82% year-on-year. Its semiconductor business generated nearly half of the company's profit, and this is no surprise considering that Samsung is one of the two suppliers for the A9 chipsets used in the Apple iPhone 6s and 6s Plus.

With over 13 million iPhone 6s and 6s Plus sold in the first weekend of sales and subsequently leading the smartphone sales in the U.S and China, Samsung can look forward to a better earnings report in Q4. The display panel business reported US$812 million in profit. It could potentially generate more profit in the neat future as there are rumors that Samsung could be supplying display panels for the Apple Watch and future iPhone models.

The mobile division saw a growth in revenue, but profits were down due to the price cut of the Galaxy S6 and S6 edge. Compared to the same period last year, the mobile division fared better. On the other hand, it is a dip from the previous quarter. Samsung states that it is expecting a stronger Q4 for the mobile division, but is wary of the stiffening competition from the likes of Apple and Chinese phone makers.

Sources: Samsung Tomorrow via The Verge and Fortune