Samsung Q3 profit possibly the highest in 3 years on rising chip prices

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Samsung Electronics Co Ltd said on Friday its third-quarter operating profit likely rose 28% to the highest in three years.

The rise is driven by rising memory chip prices and display sales for smartphone makers’ new flagship launches.

Samsung, the world’s largest memory chip and smartphone maker, estimated its July-September profit at 15.8 trillion won ($13.3 billion), slightly below a Refinitiv SmartEstimate of 16.1 trillion won.

It is its highest quarterly result since the third quarter of 2018.

Rising memory chip prices and shipments, plus a jump in profitability at Samsung’s chip contract manufacturing business, likely raised the chip division’s operating profit by about 79% from a year earlier, analysts said.

Semiconductors accounted for about half of Samsung’s operating profit in the first half of the year.

For Samsung’s mobile business, estimated sales of 2 millihere new flagship smartphones within a month showed demand for its foldable handsets captured more of the mass market than last year, analysts said.

However, this was likely offset by marketing costs and higher component costs due to the global chip shortage.

Samsung’s display unit likely saw solid results as key customer Apple Inc ramped up orders before its late-September launch of the iPhone 13 series, analysts said.

Overall revenue likely rose about 9% from the same period a year earlier to a record 73 trillion won, Samsung said in a filing.

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