Samsung expects third-quarter profit growth of 58%
Samsung expects third-quarter profit growth of 58%

Samsung said Thursday that in the three months through September 2020, profits could increase 58% year-on-year.

Samsung said in its earnings forecast that operating profit for the third quarter could reach 12.3 trillion won, or about $ 10.6 billion, more than 7.78 trillion won during the same period. last year. According to Refinitiv SmartEstimate, this is over the 10.5 trillion won analysts forecast for the third quarter of this year.

Total sales in the third quarter were around 66 trillion won, an increase of 6.5% compared to 62 trillion won in the previous year.

While Samsung did not separate all of its business, analysts said: • The weak rise contributed to smartphone sales and increased total revenue related to storage in the September quarter.

Bernstein's managing director and chief analyst Mark Newman told CNBC, "I think a lot of this is because smartphone sales are much higher." Demand for smartphone models is increasing, including: (Galaxy Note 20), and initial sales of the new foldable phone are looking good.

In addition to the mobile phone, SK Kim, CEO of Daiwa Securities, said that consumer electronics and home appliances contributed to Samsung's strong performance in the third quarter.

Kim told CNBC that the improvement in Samsung's cost structure, the move to online marketing platforms due to the COVID-19 epidemic, and pent-up demand all helped drive the company's dividends. .

Lower prices for memory chips due to oversupply in the market could affect Samsung's core business in the semiconductor industry. According to a report released this week by TrendForce, semiconductor research organization, the average retail price of memory chips is expected to remain low in the fourth quarter of 2020, with a quarterly decline of around 10%. In light of the US sanctions against Huawei, many smartphone brands are carrying products.

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