Samsung lifts its profits but warns on sales

The electronics giant Samsung's profits jumped 26 per cent in the last three months thanks to strong demand for its chips, but it warned that growth in sales of smartphones could slow in the final quarter.

The South Korean group's profits after tax were 8.2trn won (£4.7bn) in the quarter to September, against 6.6trn a year earlier.

It said growth was driven by demand for its semi-conductors and sales of its cheaper models of smartphones.

Samsung expects fierce competition in the mobile handset market in the run-up to Christmas, with shipments up by between 1 per cent and 5 per cent but no price rises.