Samsung Electronics Japan handles Samsung Electronics’ smartphone operations in the country, while a separate company, Samsung Japan, produces electronic components.
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The second part of our shareholder return initiative is the three years shareholder return policy.
In particular, Samsung SDI acquired the battery research and development facility, patent rights, and its stake in STM, which is a battery cathode material manufacturer jointly set up by Samsung Fine Chemicals and Japan’s Toda Kogyo Corp.in 2011, at the end of August Accordingly, it lent weight to the interpretation that Samsung Group may have already completed its business reorganization. Explaining the share buybacks and dividends to analysts Thursday, investor relations head Robert Yi called Samsung’s stock price “severely undervalued”.
But LG said the July-September quarter saw operating profit for its home appliances division rise more than fivefold from a year earlier to 246 billion won, buoyed by sales of high-end products such as household washing machines and air-conditioning products for business clients.
Due to these reasons alone, Samsung will be making an effort to maintain a profit level similar to last quarter and also expand product sales. Apple has a cult following and the company charges premium for its high quality smartphones and also gets better reviews for its innovation. The revenue received by the company also rose significantly over last year and reached 51.7 trillion won (up 8.9% from last year).
While Samsung has invested more than US$20 billion in capital expenditures and US$12 billion in R&D during the past several years, the company has considered how to use the cash to create long-term value for the company as well as for its shareholders.
“In the fourth quarter, the company expects earnings to decline from the earlier quarter, as it does not expect the foreign exchange rate to have a positive effect”, Samsung said in a statement.
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A lot of these profits come from Samsung’s strong grip on the chip market, where the company raked in 3.66 trillion won. But analysts say challenges remain in the long run, from shrinking profit margins to a lack of new profit drivers. The company has been exiting non-core businesses since 2014, when it agreed to sell stakes in four affiliates in four defence and chemicals companies to the Hanwha Group, another Korean conglomerate.
