September 30, 2023


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Samsung Likely to Submit 35% Surge in 3rd-Quarter Revenue as Smartphone Revenue Recuperate | Investing News

SEOUL (Reuters) – Samsung Electronics Co Ltd’s <005930.KS> September-quarter profit very likely surged more than a third, fuelled by strong smartphone product sales and a rush get of memory chips from Huawei Systems Co Ltd, analysts said.

Samsung, the world’s most important memory chip supplier, is scheduled to announce preliminary July-September operating income and profits on Thursday.

Revenue probably rose 35% to 10.5 trillion received ($9.07 billion) from the identical time period a yr before, in accordance to Refinitiv SmartEstimate, derived from analyst estimates weighted toward those people more continually exact. Profits probably rose 3%.

While Samsung’s over-all chip business enterprise was muted, analysts explained orders from Chinese smartphone maker Huawei most likely propped up product sales. Huawei is very likely to have developed stockpiles right before U.S. sanctions from mid-September prevented it from getting chips built utilizing U.S. know-how without the need of a license, analysts explained.

Very last year Samsung’s chip small business accounted for about 50 percent of its income.

U.S. rival Micron Technologies Inc

posted sector-beating profit past month, probably helped by Huawei’s rush to safe inventory, analysts said.

“Huawei’s emergency orders from late August drove up Samsung’s DRAM and NAND chip shipments, offsetting the result of weak price ranges and restricting the fall in semiconductor gains for the quarter,” stated analyst Music Myung-sup at Hello Investment & Securities.

Selling prices of DRAM chips, which let devices to multi-job, and of NAND chips, which keep info, fell in July-September, showed DRAMeXchange information.

Samsung’s smartphone earnings, which accounted for one particular-3rd of earnings previous 12 months, probably jumped as handset desire rebounded right after the COVID-19 pandemic curbed revenue in the initial half of 2020. 3rd-quarter smartphone shipments very likely rose 48% to 80 million from the second quarter, in accordance to analysts and details from Counterpoint Analysis.

Gain at Samsung’s screen enterprise probable fell, hurt by a later-than-predicted start of shopper Apple Inc’s

new Iphone. However, earnings from tv sets and home appliances possible rose as Samsung offered more devices on the net and lower functioning charges, analysts said.

Samsung is scheduled to release thorough earnings figures later this month.

(Reporting by Joyce Lee Modifying by Sayantani Ghosh and Christopher Cushing)

Copyright 2020 Thomson Reuters.