Samsung reported another strong set of quarterly results, with its smartphone business performing well – although the handset number one also acknowledged increased competition in the market.

The South Korean handset giant, which does not provide shipment volumes for its devices, said that total smartphone shipments were up on the prior sequential quarter, led by “increased sales of mass-market models”.

The company said that high-end model shipments “stayed at a similar level” quarter-on-quarter, “driven by solid sales of current models with the Note III launch”. Shipments of tablets “sharply increased” due to its enhanced product line-up following the launch of the Tab 3 line.

According to reports originating from the Korean press, Samsung this week said that more than 40 million of its flagship Galaxy S4 smartphones had been sold – against a backdrop of speculation that this device has fallen out of favour with consumers. It has been suggested the company has increased development of its successor Galaxy S5 in order to reinvigorate the line.

The company reported a net profit of KRW8.24 trillion ($7.76 billion), up 25.6 per cent year-on-year, on sales of KRW59.08 trillion, up 13.2 per cent.

For its IT & Mobile unit, which includes the mobile business, Samsung saw an operating profit of KRW6.70 trillion, up 19 per cent, on sales of KRW36.57 trillion, up 24.8 per cent. Mobile made up 96 per cent of the division’s sale at KRW35.20 trillion, up 23.9 per cent over Q3 2012.

Looking forward, it expects growth in the smartphone and tablet market to improve due to seasonality – the next quarter includes the lucrative Christmas holiday sales period – while competition will also intensify.

Balanced smartphone growth is expected across developed and emerging markets, driven by seasonal promotions (e.g. LTE in North America and South Korea) for the former, and steady demand growth led by mass-market devices in the latter.

For tablets, the company expects “healthy demand growth led by year-end promotions”.

Aside from the mobile business, Samsung’s semiconductor unit also performed well, due to supply issues that have impacted its rivals and growing device sales.

This unit saw an operating profit of KRW2.06 trillion, doubling year-on-year, on sales of KRW9.74 trillion, up 11.7 per cent.