Tech

Samsung Electronics Likely to Ride Rising Chip Prices, Phone Sales to Report Best Quarterly Profit in 3 Years

Samsung Electronics is more likely to flip in its greatest quarterly revenue in three years and a document income, on rising reminiscence chip costs and brisk gross sales of its new foldable smartphones, analysts’ estimates present.

Working revenue for the world’s greatest reminiscence chip and smartphone maker doubtless jumped to KRW 16.1 trillion (roughly Rs. 10,000 crores) within the quarter ended September, in accordance with a Refinitiv SmartEstimate from 16 analysts, weighted towards those that are extra persistently correct.

That may be up 30 p.c from KRW 12.35 trillion (roughly Rs. 77,300 crores) a 12 months earlier and the best for the reason that third quarter of 2018. Income doubtless rose 11 p.c to 74.6 trillion received (roughly Rs. 4,67,000 crores), a document excessive.

An unprecedented international scarcity in semiconductor chips amid the pandemic has underpinned Samsung’s outcomes and shares, which soared 45 p.c final 12 months and hit a document excessive initially of 2021.

However the inventory has dropped since then, compounded by losses in September when US peer Micron warned its reminiscence chip shipments would slip within the close to time period, amid trade views that chip costs will tumble after peaking in July-September.

“Samsung shares have fallen on account of Micron’s steering however not like Micron, Samsung internalises main elements … and has different companies like cell and foundry to buoy efficiency,” stated Hanwha Funding & Securities analyst Lee Quickly-hak.

“Reminiscence (chip) costs are seen rebounding subsequent 12 months after a brief interval of decline,” Lee added.

Samsung will announce preliminary outcomes on Friday.

Chip division, smartphones

Samsung’s chip division is more likely to report an working revenue of KRW 9.9 trillion (roughly Rs. 61,970 crores), a mean of six analysts’ forecasts exhibits, up 79 p.c from a 12 months earlier, helped by rising reminiscence chip costs and shipments.

Costs of DRAM chips, utilized in servers, cell phones and different computing units, jumped 7.9 p.c versus the June quarter, whereas these of NAND flash chips that serve the info storage market rose 5.5 p.c, information from analysis supplier Trendforce exhibits.

Analysts additionally forecast a double-digit working margin for Samsung’s chip contract manufacturing enterprise as purchasers rush to safe manufacturing capability.

Its cell division doubtless noticed about KRW 3.7 trillion (roughly Rs. 23,160 crores) in working income, analysts stated, down from KRW 4.45 trillion (roughly Rs. 27,840 crores) a 12 months earlier however up from the prior quarter’s KRW 3.2 trillion (roughly Rs. 20,020 crores) on foldable smartphones gross sales.

An estimated 2 million Galaxy Z Fold 3 and Z Flip 3 fashions had been offered in a month since launching in late August, with South Korea topping gross sales adopted by the US, stated Jene Park, senior analysis analyst at Counterpoint.

Market individuals can be scouring Samsung’s full outcomes later this month for an replace on its deliberate $17 billion (roughly Rs. 1,26,800 crores) US semiconductor manufacturing unit after sources stated it was drawing nearer to finalising the development.

© Thomson Reuters 2021


Are the Galaxy Z Fold 3 and Z Flip 3 nonetheless made for fans — or are they adequate for everybody? We mentioned this on Orbital, the Devices 360 podcast. Orbital is accessible on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Source link

news7h

News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button