Samsung warns of tepid mobile business profit, bets on chip sales instead

Samsung Electronics warned of a smaller mobile business profit on Thursday as its rival Apple gave a positive iPhone sales outlook, dampening hopes new models will help the world’s largest smartphone vendor finally get back on a growth track.

Investors have pinned their hopes on a recovery in the mobile business that once made up over half of Samsung’s profit, as its chip operation remains in the doldrums due to over-supply and weak global demand.

Strong sales of the Galaxy Note 10 smartphone helped the South Korean firm report its best mobile business profit in six quarters in the three months ended in September, as it recovers from a battery explosion scandal in late 2016 that hurt sales.