Samsung is expecting a record profit of $25 billion this year after posting a record quarterly profit of $7.3 billion in Q3 — nearly double year-over-year.
Analysts, though, expect the company’s streak of four consecutive record quarters to come to a screeching halt next quarter — and then to decline until the second quarter of next year.
Some headwinds include higher performance payouts for employees, around $1 billion in legal damages to rival (and customer) Apple (NASDAQ:AAPL) and a crowded smartphone market.
The company is also increasing its marketing in the face of its competitor’s new must-have iPhone 5, despite having already spent billions so far this year.
Still, the company has enjoyed solid sales of high-end TVs and Galaxy smartphones, allowing it to boom even as Apple reduced order for chips and screens.
In Q3, the company’s mobile division more-than-doubled to around two thirds of total profit, while smartphone shipments topped 58 million.
Next year, Samsung is planning to scale back its chip investment because of such falling demand.