Samsung Electronics forecasts 25% jump in operating profit

Semiconductors feel a price rise with the ongoing chip crisis.



Samsung Electronics Co.’s has estimated profit to soar by more than 25 percent – the highest level in three years in the third quarter – thanks to rising prices for semiconductors and strong demand for its new Galaxy Z Flip 3, the tech giant’s foldable phone. The South Korean company is also expecting record sales but warned of an impending downcycle of semiconductors.

The upbeat earnings estimate from Samsung was allayed by analyst concerns that semiconductor chips would be in the midst of a downcycle.

Samsung Galaxy Z Flip semiconductor

Samsung shares rose 1% in Seoul, South Korea after the announcement.

The conglomerate posted operating profit of Won15.8 trillion ($13.2 billion) between July and September, up 28 percent from Won12.3 trillion a year earlier. The figure is slightly lower than the Won16.1 trillion estimated by analysts polled by Refinitiv.

Samsung Electronics’ sales rose 9 percent to a high of Won73 trillion, according to preliminary results released on Friday. It will provide net income and divisional breakdowns when it released final results on Oct. 28.

The world’s largest maker of smartphones and memory chips has strongly benefitted from a surge in demand as the global economy recovers from the ghastly pandemic. The ongoing chip crisis have pushed up prices of semiconductor chips, used in everything from smart cars to smartphones and the data centers powering cloud services worldwide.

Samsung Electronics Co. is also expanding its foundry operations to new applications in artificial intelligence (AI) and data center. On top of it, the company is also ramping up production of its mobile business to meet strong demand for its foldable smartphones. The Z series, launched in August, comes at a hefty price tag of more than $1,800. The electronics giant sold one million new foldable phones in Korea. It is the third highest selling product after its Note 10 and Galaxy S8.

Samsung shares rose 1% in Seoul, South Korea after the announcement.

The company’s latest earnings estimate came after Lee Jae-young, its vice-chairman and leader of the Samsung Group, came out of prison in August. Lee was released on parole after completing half of his two and a half year sentence. He was jailed for embezzlement, bribery and other offenses in connection with corruption scandal that brought down ex-Korean president Park Guen-hye.

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Leave a Reply

Your email address will not be published.

Recent Posts

How Can CEOs Build a Culture of Innovation

How Can CEOs Build a Culture of Innovation

A healthy level of autonomy equips people with the ability to shape their environment. Pfizer’s Dare to Try initiative is a good example of how to create an innovative culture in
3 hours ago
The New Apple iPhone Concept Looks Waterproof

The New Apple iPhone Concept Looks Waterproof

The patent uses the word “moisture event” that can mean anything from a slight wetness to having the device completely immersed in liquid.
3 hours ago
Swiss Water Battery Gives Earth Lifeline In The Form Of Green Energy

Swiss Water Battery Gives Earth Lifeline In The Form Of Green Energy

Equivalent of 400,000 electric car batteries, the Swiss water battery is going to bring in stability in a great deal in terms of energy resources. The 900 MW ‘water battery’ wh
13 hours ago
Crypto Crisis Takes Down Crypto Advertising

Crypto Crisis Takes Down Crypto Advertising

With stocks crashing and inflation rising, the crypto crisis has turned acute, showing us that it is connected to the overall market. Analysts predict that the downturn will contin
13 hours ago
Warren Buffett Occidental Stake Balloons To Nearly 17 Percent

Warren Buffett Occidental Stake Balloons To Nearly 17 Percent

Warren Buffett Occidental stake sojourn started in February 2022 after he listened to an analyst’s presentation on the company. He soon started buying up Occidental stock warrant
1 day ago
July Fourth Fireworks – An Expensive Celebration With Inflation

July Fourth Fireworks – An Expensive Celebration With Inflation

According to the American Pyrotechnics Association (APA), overall costs to the industry are up 35%. Meanwhile, local businesses are trying to keep prices manageable so that people
2 days ago