 |
| Maximum profit from Samsung in three years |
With memory chip prices soaring and sales of new flagship smartphone displays, Samsung announced Friday that its third-quarter operating profit rose 28% to a three-year high.
The initial result is a 26% increase over the second quarter. Although it was a little less than expected.
The world's largest maker of memory chips and smartphones estimates its profit from July to September at 15.8 trillion won (US$13.3 billion). This is the highest quarterly profit since the third quarter of 2018 with profits of over 17.5 trillion won.
Analysts said the increase in memory chip prices and shipments, along with increased profitability of Samsung's chip-foundry business, could increase the chip division's operating profit by about 79% compared to the same period last year.
Semiconductors accounted for about half of the company's operating income in the first half of the year. Prize details will be announced later this month.
Analysts said memory chip prices are expected to fall this quarter due to an expected drop in global production shutdowns to boost sales and lower PC demand. Smartphone deliveries may also decline.
The company's chip manufacturing business is expected to be a bright spot in the coming year. The company has announced that it will start producing advanced designs for its 3nm chips in the first half of 2022.
Samsung operating profit rises 28%
Samsung competes with Taiwan's leading semiconductor company TSMC to anticipate the latest technologies and attract customers.
Analysts said the company's mobile business is expected to sell two million new foldable smartphones within a month, indicating that demand for its foldable devices has captured a larger market share than last year.
However, due to the scarcity of global chips, this can be offset by higher marketing and component costs.
Analysts also said Samsung's display division may be doing well. The main customer, Apple, increased its orders ahead of the launch of the iPhone 13 series in late September.
Samsung said in a statement that total sales may increase by about 9% compared to the same period last year. It reached a record 73 trillion won.