South Korean electronics giant Samsung Electronics on Friday posted a 28% jump in operating profit — the highest in 3 years — on the back of greater memory chip costs and show unit sales ahead of new flagship smartphone launches, Reuters reported.
Samsung, which is the biggest smartphone and memory chip manufacturer in the world, estimated the July-September operating profit at approx. Rs 99,190 crore.
The preliminary third-quarter outcome was 26% greater on a sequential basis. The operating profit came in just beneath the company’s forecasts. Market analysts had anticipated a flat or slightly reduce earnings due to an anticipated decline in memory chip costs.
Analysts attributed increasing chip costs and shipments, coupled with a jump in profitability of the company’s chip contract manufacturing small business, for raising the chip division’s operating profit. The chip division posted a 79% on-year rise in operating profit.
Half of Samsung’s operating profit throughout the very first half of the year came from semiconductors.
According to analysts, memory chip costs are anticipated to decline this quarter amid an anticipated drop in demand for individual computer systems due to a probably easing in international lockdowns that aided the sales more than the previous handful of months. They also estimate a decline in smartphone shipments throughout the last quarter.
Samsung sold an estimated 2 million units of its new foldable smartphones in just a month, Reuters reported. The staggering quantity showed mass demand in the industry for its foldable handsets was considerably greater than last year.
However, the greater sales figure was probably to have been offset by Samsung’s advertising expenses and greater element costs amid a worldwide chip shortage.
Analysts told Reuters that show unit sales probably witnessed strong sales as Apple, a essential consumer, ramped up orders prior to its unveiling of the iPhone 13 series in late September.
According to a regulatory filing by Samsung, all round income is probably to have risen 9% on year to a record Rs 458,230 crore.