It is reported that Samsung Electronics predicted that the profit for the three months ending in September was on target for 58% growth from a year ago. The Korea Herald’s report went a step further by noting that Samsung had logged its largest operating profit in 2 years. With Huawei starting to falter, and the company becoming very aggressive on cheaper prices and more models than ever, this is not surprising news.
With great new products like Apple Watch Series 6 and new iPads, Apple can be in a positive position to report positively even when they report on their finances for Fiscal Q4 2020 October 29, 2020 at 14:00 PT / 17:00 ET.
As for Samsung, they estimate that operating profit for the quarter probably came in at 1
Total sales were about 66 trillion won in the quarter, an increase of about 6.5% from 62 trillion won a year ago.
Although the company did not provide an overview of how each business unit performed, just as Apple does now, some analysts previously predicted that the September quarter results would be driven by an increase in smartphone sales in the second half of 2020 and higher overall memory-related revenue.
The mobile division as well as consumer electronics and household appliances probably contributed to Samsung’s strong earnings in the third quarter, according to SK Kim, CEO of Daiwa Securities. He explained on Thursday on CNBC’s “Squawk Box Asia” that an improvement in Samsung’s cost structure, a shift to online marketing platforms in light of the coronavirus pandemic and pent-up demand helped boost the company’s earnings.
Kim added that there is upward demand for Samsung’s mobile chips while the display device is set to receive a boost in the fourth quarter from a new iPhone launch – Samsung is a provider of advanced screenshots used in iPhones. For more on this, read the full CNBC report.
You can also read the full report from the Korea Herald for more color in the quarter. A special point of interest in the report was that “Samsung’s smartphone shipments are expected to have jumped over 40 percent in the third quarter and reached 80 million units.”