Samsung Electronics announced its third quarter 2020 earnings forecast on Thursday. The company expects its third-quarter revenue to reach 66 trillion won (approximately 57 billion U.S. dollars), an increase of 6.45% from the same period last year, and exceeding the 63.25 trillion won (approximately 54.67 billion U.S. dollars) commonly expected by analysts.
Operating profit was 12.3 trillion won (approximately US$10.6 billion), an increase of 58.1% over the same period last year, and also exceeded market expectations of 10.5 trillion won (approximately US$9.07 billion).
Analysts said that the reason why Samsung’s operating profit increased so much in the third quarter may be due to the strong recovery of smartphone sales and the boosting effect brought by Huawei’s snapping up of memory chips.
The profit of Samsung’s smartphone business accounted for one-third of last year’s total profit. As mobile phone demand rebounded after the new crown pneumonia epidemic suppressed sales in the first half of 2020, the profit of this business may increase significantly.
According to data from Counterpoint Research, a market research organization, Samsung’s smartphone shipments in the third quarter may increase by 48% over the second quarter, from 54.2 million to 80 million.
As the memory chip business is still sluggish, Samsung’s overall chip business performed weakly this quarter.
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