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Samsung announces record breaking Q3 profits but smartphone sales slow

Samsung has yet again broke its own records after profits surged by 26 per cent to ₩10.2 trillion (£5.6 billion) for the last quarter.

The announcement matches estimates and was particularly powered by a recovery in the firm's memory chip business. Although Galaxy sales remain strong, growth has greatly eased.

The strong profits continues a trend in which the company has posted record returns in six of the past seven quarters.

The strong run could be difficult to maintain in this quarter however, without the release of a new smartphone, after the launches of the Galaxy Gear smartwatch and Galaxy Round, a curved device, have been met with a muted response.

Samsung shares traded unchanged after the announcement, in contrast to a 0.3 percent decline in the wider technology market.

"Mobile DRAM shipments will stay strong with the release of various low- to high-end smartphones as the holiday season nears. With the rise in demand for specialty DRAM and NAND, the market will experience tighter supply," Samsung said in a statement.

Chip profits doubled to ₩2.06 trillion (£1.2 billion) in the quarter, the highest in three years, a probable result of tighter supply in the technology since a fire last month at a SK Hynix plant in China.

Mobile sales reported a record ₩6.7 trillion (£4.1 billion) profit, with sales boosted by shipments of cheaper Galaxy smartphones, countering weakened growth in the high-end market occupied by the likes of the S4.