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.

Recent Posts

Why Is Squid Game So Popular?

Why Is Squid Game So Popular?

The Squid Game segments were watched by at least 132 million people in the first 23 days of the show on Netflix. Know what excited the viewers.
16 hours ago
Amazon under Congressional scrutiny for pushing own products over others

Amazon under Congressional scrutiny for pushing own products over others

US judiciary Antitrust Committee writes a letter saying that Amazon is given time till November 1 to prove that it utilizes seller data available to create competing products and p
2 days ago
Porsche’s Taycan EV outsells ICE powered its 911 sports car

Porsche’s Taycan EV outsells ICE powered its 911 sports car

The Porsche Taycan EV has outsold the Porsche 911 sports car for the first time since it was introduced in 2019 by the German automaker.
3 days ago
Tesla expected to make a killing in Bitcoin profits in next earning report

Tesla expected to make a killing in Bitcoin profits in next earning report

The price of Bitcoins has rallied to another high in October after hitting around $64,800 in April. This time it has hit over $58,000 on Oct. 14.
4 days ago
Tesla Cybertruck V/s Rivian’s R1T

Tesla Cybertruck V/s Rivian’s R1T

The Tesla Cyberturck left many disappointed with its alien space ship-like design; though both trucks are still under production, what matters most is what comes under the hood.
5 days ago
College sports is multibillion dollar industry in the US

College sports is multibillion dollar industry in the US

According to data analyzed by GOBankingRates, head football coaches, closely followed by basketball coaches, easily rack up seven-figure salaries in the US.
6 days ago