By Joyce Lee and Heekyong Yang
SEOUL (Reuters) -Samsung Electronics Co Ltd on Friday flagged a 28% leap in its third-quarter working revenue to the very best in three years, pushed by rising reminiscence chip costs and show gross sales for brand new flagship smartphone launches.
The preliminary end result was up 26% from the second quarter, though slightly below forecasts, whereas the market response was additional muted as analysts pencilled in a flat or barely decrease end result this quarter on an anticipated fall in reminiscence chip costs.
The world's largest reminiscence chip and smartphone maker estimated its July-September revenue at 15.8 trillion gained ($13.3 billion), beneath a Refinitiv SmartEstimate of 16.1 trillion gained. It is the very best quarterly revenue for the reason that third quarter of 2018.
"The mobile business' operating margin might have been lower than the market expected," mentioned Park Sung-soon, analyst at Cape Investment & Securities. "We will have to see marketing costs and what the mix of products Samsung (KS:) sold was like."
Rising reminiscence chip costs and shipments, plus a leap in profitability at Samsung's chip contract manufacturing enterprise, possible raised the chip division's working revenue by about 79% from a 12 months earlier, analysts mentioned.
Semiconductors accounted for about half of Samsung's working revenue within the first half of the 12 months.
Samsung shares pared early positive factors to be up 0.4% in afternoon commerce. It is because of announce detailed earnings later this month.
The inventory has fallen about 12% to date this 12 months versus a 3% rise within the wider market, harm by losses in September when U.S. peer Micron Technology Inc (NASDAQ:) mentioned https://www.reuters.com/technology/us-chipmaker-micron-forecasts-first-quarter-revenue-below-estimates-2021-09-28 its reminiscence chip shipments would slip within the close to time period.
Analysts mentioned costs for reminiscence chips are anticipated to tumble this quarter as demand for private computer systems drops amid an anticipated easing in international lockdowns which have helped energy gross sales, whereas smartphone shipments may additionally decline.
A vibrant spot subsequent 12 months is predicted to be Samsung's chip contract manufacturing enterprise, which on Thursday introduced plans to begin producing cutting-edge, 3-nanometre chip designs within the first half of 2022, because it races in opposition to trade chief Taiwan Semiconductor Manufacturing Co Ltd to preempt superior know-how and win shoppers.
For Samsung's cellular enterprise, estimated gross sales of two million https://www.reuters.com/technology/samsung-electronics-likely-report-best-quarterly-profit-3-years-2021-10-05 new foldable smartphones inside a month confirmed demand for its foldable handsets captured extra of the mass market than final 12 months, analysts mentioned.
However, this was possible offset by advertising prices and better part prices as a result of international chip scarcity.
Samsung's show unit possible noticed stable outcomes as key buyer Apple Inc (NASDAQ:) ramped up orders earlier than its late-September launch of the iPhone 13 sequence, analysts mentioned.
Overall income possible rose about 9% from the identical interval a 12 months earlier to a document 73 trillion gained, Samsung mentioned in a submitting.
($1 = 1,191.2500 gained)
Fusion Media or anybody concerned with Fusion Media won't settle for any legal responsibility for loss or injury on account of reliance on the knowledge together with information, quotes, charts and purchase/promote alerts contained inside this web site. Please be absolutely knowledgeable concerning the dangers and prices related to buying and selling the monetary markets, it is likely one of the riskiest funding types doable.
