Business & Economy

Samsung expects 2020 Q3 operating profit to rise by 58%

Seoul, Oct 8 (efe-epa).- South Korean tech giant Samsung Electronics announced Thursday that it expects an operating profit of 12.3 trillion won (around $10.63 billion) in the third quarter of 2020, a year-on-year increase of 58 percent.

This would also be 50.9 percent more than the operating profit recorded in the previous quarter.

At the same time, the multinational electronics company headquartered in Suwon, south of Seoul, expects its consolidated sales to reach 66 trillion won, according to its earnings guidance report released Thursday.

This would be an increase of 6.4 percent over the same quarter of 2019 and 24.6 percent more than the sales recorded between April and June this year.

The data beats most analysts’ estimates, with many experts predicting that falling chip prices would initially have a more damaging effect on the world’s largest manufacturer of chips.

The electronics giant’s good performance could also be attributed to a remarkable recovery of its telecommunications business during the pandemic.

A report published by American consultancy Strategy Analytics points out that in the first half of 2020, Samsung Electronics was the world’s second largest seller of image sensors for phones – with 32 percent market share – behind only Japanese multinational Sony, which has a 44 percent share.

The report believes that by December, Samsung will consolidate its position in a market that is growing this year.

As usual, Samsung did not disclose concrete data on its various business divisions nor information about its net profit estimate.

The company will release its final results for the third quarter at the end of the month. EFE-EPA

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