By Joyce Lee
SEOUL, Oct 7 (Reuters) – Samsung Electronics Co Ltd’s 005930.KS September-quarter earnings possible surged more than a 3rd, fuelled by potent smartphone sales and a hurry purchase of memory chips from Huawei Technologies Co Ltd HWT.UL, analysts stated.
Samsung, the world’s most significant memory chip supplier, is scheduled to announce preliminary July-September functioning revenue and earnings on Thursday.
Earnings probably rose 35% to 10.5 trillion gained ($9.07 billion) from the exact same period a 12 months earlier, according to Refinitiv SmartEstimate, derived from analyst estimates weighted towards those people much more persistently exact. Revenue possible rose 3%.
While Samsung’s over-all chip business enterprise was muted, analysts said orders from Chinese smartphone maker Huawei probably propped up product sales. Huawei is most likely to have created stockpiles right before U.S. sanctions from mid-September prevented it from shopping for chips produced employing U.S. know-how devoid of a license, analysts mentioned.
Past calendar year Samsung’s chip company accounted for around 50 % of its revenue.
U.S. rival Micron Engineering Inc MU.O posted marketplace-beating income past month, most likely assisted by Huawei’s rush to secure inventory, analysts mentioned.
“Huawei’s crisis orders from late August drove up Samsung’s DRAM and NAND chip shipments, offsetting the result of weak costs and restricting the fall in semiconductor profits for the quarter,” said analyst Tune Myung-sup at Hi Expenditure & Securities.
Selling prices of DRAM chips, which enable products to multi-activity, and of NAND chips, which shop data, fell in July-September, showed DRAMeXchange details.
Samsung’s smartphone gain, which accounted for one-3rd of earnings very last calendar year, likely jumped as handset demand rebounded right after the COVID-19 pandemic curbed revenue in the initial half of 2020. 3rd-quarter smartphone shipments probably rose 48% to 80 million from the 2nd quarter, in accordance to analysts and information from Counterpoint Exploration.
Income at Samsung’s display screen enterprise most likely fell, harm by a later-than-expected start of purchaser Apple Inc’s AAPL.O new Apple iphone. Even so, earnings from television sets and house appliances probable rose as Samsung offered additional gadgets on the web and minimize operating costs, analysts reported.
Samsung is scheduled to release thorough earnings figures later on this thirty day period.
($1 = 1,157.0400 won)
(Reporting by Joyce Lee Editing by Sayantani Ghosh and Christopher Cushing)
(([email protected] +82 2 6936 1467))
The views and viewpoints expressed herein are the views and views of the writer and do not necessarily replicate all those of Nasdaq, Inc.