No data to display.

Samsung posts best quarterly profit in three years

By Shubhangi on Oct 09, 2021 | 05:39 AM IST

samsung.png

Samsung’s third-quarter operating profit surged 28%, highest since 2018.

Samsung reported profit of 15.8 trillion won ($13.3 billion), compared to analysts’ expectation of 16.1 trillion won.

Samsung Electronics Co Ltd said on Friday its third-quarter operating profit surged 28%, highest profit in three years since the third quarter of 2018 due to rising memory chip prices.

The smartphone maker posted a profit of 15.8 trillion won ($13.3 billion) for the quarter, compared to analysts’ expectation of 16.1 trillion won, according Refinitiv SmartEstimate.

"The mobile business' operating margin might have been lower than the market expected," said Park Sung-soon, analyst at Cape Investment & Securities. "We will have to see marketing costs and what the mix of products Samsung sold was like."

Read more: Wall Street shivers after Friday’s dismal jobs report

Samsung said the overall revenue rose about 9% from the prior year to a record 73 trillion won.

Memory chip price surge

The rise in memory chip prices was the driving force behind the rise in chip division’s operating profit by about 79% from the prior year.

 According to analysts, memory chips prices may go down as demand of personal computers fall with easing of lockdowns globally, and smartphone shipments might also fall.

About half of the company’s operating profit in the first half of the year came from semiconductors.

Samsung’s shares

Shares of the South-Korean memory chip and smartphone maker were up 0.4% in afternoon trade on Friday.

Company’s stock has fallen about 12% until now in this year, while in the wider market it has risen 3%.

Read more: Tesla moves headquarters to Texas from Silicon Valley

The chip contract manufacturing business of Samsung announced on Thursday its plan to start manufacturing cutting-edge, 3-nanometre chip designs in the first half of 2022.

Picture Credits: Reuters


Stock View