Operating Profit in MX and Network Divisions Up 27%
Accounting for 30% of Samsung's Q3 Operating Profit
Sales of High-End Flagship Products on the Rise
Driven by strong sales of artificial intelligence (AI) foldable phones, Samsung Electronics recorded operating profit of 3.6 trillion won in its Mobile eXperience (MX) and Network divisions in the third quarter of this year. This accounts for approximately 30% of the company's total operating profit of 12.2 trillion won for the third quarter.
On October 30, Samsung Electronics announced that, on a consolidated basis, it posted sales of 86.1 trillion won and operating profit of 12.2 trillion won in the third quarter of this year.
In particular, thanks to strong sales of the Galaxy Z Fold7, the MX and Network divisions posted sales of 34.1 trillion won and operating profit of 3.6 trillion won. These figures represent 39% of total sales and 30% of total operating profit, respectively.
Compared to the same period last year, sales and operating profit in the MX and Network divisions increased by 12% and 27%, respectively. The rise in sales of high-end flagship products, along with increased sales of new tablet and wearable devices, enabled the company to maintain double-digit profitability.
During the domestic pre-sales held in July for the Galaxy Z Fold7 and Flip7, a record 1.04 million units were sold, marking the highest pre-sale volume ever for Galaxy foldable devices. Notably, the proportion of customers preferring the Fold7 increased from around 40% last year to 60% this year.
The Fold7 boasts a slim profile of 8.9 mm when folded and 4.2 mm when unfolded, with a lightweight design at 215 grams. Its 21:9 aspect ratio allows users to enjoy a bar-type smartphone experience even when the device is folded.
AI features and user experience have also improved compared to previous models. By using the screen or camera sharing features of "Gemini Live," which implements multimodal AI, users can receive instant voice responses instead of relying solely on text-based search methods.
With features such as "Circle to Search" and "AI Result View," users can multitask by performing ongoing work and AI tasks simultaneously.
In addition, the "New Galaxy AI Subscription Club," launched by Samsung Electronics earlier this year, has been well received by younger consumers who prefer to upgrade to the latest smartphones every one or two years.
This subscription program, targeting customers who purchase unlocked Galaxy phones, offers the benefit of purchasing the latest smartphone at up to half price after one year for a monthly fee of 5,900 won. More than half of customers who pre-ordered Galaxy foldable phones on Samsung.com reportedly subscribed to this program, indicating a growing pool of potential customers who may switch to Galaxy phones in the future.
Samsung Electronics plans to continue expanding sales of AI smartphones, including the Galaxy S25 series and foldable devices, through end-of-year peak season promotions. The company also aims to strengthen sales of tablets and wearable devices, focusing on new premium products.
Recently, Samsung Electronics launched the Galaxy XR, a headset-type mobile device. Based on multimodal AI, it recognizes voice, gaze, gestures, and more, enabling intuitive interaction between the user and the device.
A Samsung Electronics representative stated, "Next year, the MX division will continue to strengthen its AI leadership, expand sales centered on flagship products, and pursue ongoing cost efficiency."
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