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Wednesday, October 28, 2020

Samsung Q3 profit jumps from chips and smartphones - ZDNet

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Samsung Electronics said on Thursday it posted 12.35 trillion won in operating profit and almost 67 trillion won in sales for the third quarter.

It is an increase of 58% and 8%, respectively, year-on-year. Samsung said it was the company's highest quarterly sales ever. Operating profit was also its best performance since the third quarter of 2018.

The semiconductor business contributed 5.54 trillion won in operating profit.

Demand for memory was better than expected from mobile, Samsung said, especially from low and mid-end phones while Huawei's inventory buildup has also helped the business.

Meanwhile, demand from servers somewhat weakened in the quarter but PC demand rose.

Samsung's mobile business contributed 4.45 trillion won in operating profit.

Smartphone sales rose sharply from the second quarter thanks to the launches of the Galaxy Note 20 and Galaxy Z Fold 2. Mass models also sold well in regions like India, Samsung said.

Efficient cost management, meanwhile, improved profitability, the South Korean tech giant said.

Samsung's consumer electronics business contributed 1.56 trillion won in operating profit.

Pent-up demand from the easing of lockdown measures from COVID-19 along with the at-home trend saw TV demand surge in the quarter, the company added.

This led to Samsung's display business contributing 470 billion won in operating profit for the quarter, thanks to increased demand from smartphones and TVs.

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October 29, 2020 at 10:10AM
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Samsung Q3 profit jumps from chips and smartphones - ZDNet

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