Samsung expects profit to rise

Samsung expects profit to rise

Electronics giant samsung expects to post its highest operating profit in two years for the quarter just ended, thanks to a rebound in demand for its galaxy line of smartphones and a robust chip business.

Profit from core businesses is expected to be 12.3 billion won (9 billion euros) in the third quarter of 2020, the south korean company said on thursday. That was an increase of 58 percent year-on-year. Market leader’s estimates for memory chips, smartphones and televisions exceed market expectations.

In terms of sales, samsung expects an increase of 6.5 percent to 66 billion won. As usual, the group will only present more precise business figures at a later date.

This year, the company benefited in particular from the increase in internet traffic in the wake of the covid 19 pandemic. This has driven demand for memory chips for servers and pcs since the beginning of the crisis as more people work from home. Although prices have recently declined again due to oversupply. But rush orders from chinese telecommunications equipment maker huawei had saved samsung from a more severe profit slump in the division, national news agency yonhap reported. Huawei is the focus of a blockade policy by the US government in the current trade war between the USA and china.

In contrast to the chip sector, the negative consequences of the pandemic affected samsung primarily in the smartphone and consumer electronics business. But analysts were expecting significantly stronger smartphone sales in the third quarter.