Samsung Electronics forecast shipments of mobile devices to rise in the current quarter, but warned continuing macroeconomic instability and rising inflation could put downward pressure on ASPs.

For 2023, the company expects smartphone revenue to improve year-on-year, led by growth in flagship models, and wearables to see double-digit growth, Kim Sung-koo, VP of Mobile eXperience (MX), said in an earnings call.

The MX division’s revenue in the July to September period grew 13.4 per cent from a year earlier to KRW29.3 trillion ($20.7 billion), driven by an 11.9 per cent increase in smartphone ASP to $282. Operating profit fell 3.6 per cent to KRW3.24 trillion.

Smartphone shipments in the quarter fell 11.1 per cent to about 64 million units; tablet shipments were flat at 7 million.

Kim added that amid intensifying market competition and persistent macroeconomic challenges, such as currency headwinds, the company “will focus on profitability through flagship sales and efficient resource management”.

Ben Suh, EVP of investor relations, said its network business delivered improved results, led by overseas growth. It recently secured a deal with Comcast in the US.

On a group basis, Samsung’s net profit slipped 23.6 per cent to KRW9.4 trillion, attributed to a challenging business environment marked by global inflation and sluggish demand for memory. Revenue rose 3.8 per cent to KRW76.8 trillion, its highest ever in Q3.

It expects full-year revenue in 2022 to top its record set last year.

The company’s board approved the appointment of Jay Lee as executive chairman.