Samsung Group of Korea, officially known as the Samsung Electronics Co. Ltd., reported record profits for the 3Q matching analyst expectations The South Korean tech giant’s operating profit matched estimates with a 26 percent rise to a new record, according to Reuters.

The company is powered by a strong recovery in its memory chip business as smartphone sales growth eases sharply. The world’s number one smartphone vendor reported that profits for July-September rose to 10.2 trillion won or $9.6 billion, consistent with estimates.

The chip business of Samsung doubled to 2.06 trillion won, the highest it has for three years. Reuters reported that the rise reflected stronger chip prices this year and tighter supply since a fire last month at a Chinese plant owned by SK Hynix.

“Mobile DRAM shipments will stay strong with the release of various low- to high-end smartphones as the holiday season nears. With the rise in demand for specialty DRAM and NAND, the market will experience tighter supply," Samsung said in a statement, as reported by Reuters.

Not surprising, Samsung biggest earnings generator was its mobile division which reported a record 6.07 trillion won in profits as a greater range of cheaper Galaxy smartphones boosted shipment volumes and helped counter weakening growth in the high-end segment.

This report came as Samsung has earlier disclosed that it has sold 40 million units from its Samsung Galaxy line prior to the announcement of the Samsung Galaxy Note 3.

The company, however, with intent to manage expectations warns that said that the strength of its chip business worldwide would continue in the current quarter, but warns that the growth in smartphones would slow due to intensified competition during the year-end holiday season.