Business & Economy

Samsung Electronics’ net profit up almost 50% in Q3

Seoul, Oct 29 (efe-epa).- South Korean tech giant Samsung Electronics’ net profit increased by 48.8 percent year-on-year in the third quarter of 2020 owing to its chip business and higher sales of its mobile phones.

Between July and September, Samsung Electronics made a net profit of 9.36 billion won (about $8.3 billion) and a gross profit of 12.84 trillion won, up 48.9 percent year-on-year, the company announced Thursday.

It also recorded an operating profit of 12.35 trillion won, which is 58.7 percent more than in the same period of 2019, on sales of 66.96 trillion won, 8 percent more than a year ago.

“Overall market demand increased in the third quarter as stimulus measures helped many economies recover following lockdowns during the second quarter,” the multinational electronics company headquartered in Suwon, south of Seoul, said in a statement.

The results announced on Thursday are in line with the earnings guidance report that Samsung released on Oct. 8.

The semiconductor business posted an operating profit of 5.54 trillion won, and a jump of 81.6 percent year-on-year, along with revenues of 18.8 trillion won, an increase of 7 percent over the same period last year.

For memory chips, mobile demand was “positively impacted by the expansion of 5G and inventory buildup from Huawei,” the Chinese tech giant on which the United States has imposed sanctions, according to the statement.

Samsung Electronics also recorded a “near 50 percent jump in sales of smartphones including new flagship products,” while the consumer products division “also witnessed a sharp growth in sales of premium TVs and appliances, supported by flexible management of supply chain and sales channels,” the company said.

However, the multinational added that it “expects profit to decline in the fourth quarter amid weakening memory chip demand from server customers and intensifying competition in mobile phones and consumer electronics.”

Samsung Electronics also expects global demand to recover in 2021 while acknowledging that “uncertainties will remain over the possibility of recurring epidemic waves of COVID-19.” EFE-EPA


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