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South Korea’s two tech giants of Samsung Electronics and LG Electronics managed to log record sales during the third quarter of this year. Photo courtesy of Samsung Electronics and LG Electronics

LG Electronics racks up outstanding turnover in Q3

Samsung Electronics announced this week that its third-quarter sales amounted to 73.98 trillion won ($63 billion), up 10 percent from a year before.

The tech giant’s operating profit stood at 15.82 trillion won ($13.5 billion) during the July-September period based on the solid performances in semiconductors and displays.

The Seoul-based company saw its memory business rack up record quarterly bit shipment and the second-highest revenue for DRAM. Strong demand from smartphone makers also boosted its display panel business.

In the case of the mobile communications sector, its popular foldable models and growth from tablets/wearables supported a sequential improvement in earnings, according to Samsung.

“For the fourth quarter, we will focus on meeting the demand for memory and system semiconductor products even as component shortages at some customers may affect demand,” a Samsung official said.

“We will also maintain solid profitability in the finished products businesses by strengthening our leadership and lineups in the premium segment.”

Samsung’s cross-town rival LG Electronics also logged the biggest sales in the third quarter by recording 18.79 trillion won ($16 billion) underpinned by the home appliance business.

However, the company’s operating profit was a mere 540.7 billion won ($460 million), a fraction of Samsung’s.

“The increased sales of premium TV sets, like OLED products, have propped up the performances of LG Electronics in the third quarter,” Daishin Securities analyst Park Kang-ho said.

“Plus, its withdrawal from the money-losing smartphone business was also a positive factor for the company.”

LG Electronics decided to fold its smartphone business earlier this year as the department failed to turn a profit for years.

Samsung Electronics is the world’s largest maker of semiconductors and smartphones, while LG Electronics is a global powerhouse in the home appliance business.

The two are long-time rivals. But over the past two decades, Samsung Electronics has outpaced LG Electronics thanks to its stellar performances in memory chips.

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The publisher studied Korean history in Seoul and management of business administration in the United Kingdom. He has 20-year experiences in the media business. Kim can be reached at voc200@gmail.com or 82-2-6956-6698.