Strong demand for chips and flexible smartphones will drive Samsung’s revenue above expectations

Samsung Electronics is due to release its third quarter revenue and operating profit guidance this Friday, which ended in September. Full statistics will be provided by the end of October. Analysts expect Samsung to perform better than expected thanks to high prices for semiconductor components and strong demand for new smartphones with flexible displays.

Image Source: Nikkei Asian Review, AP / Samsung

Image Source: Nikkei Asian Review, AP / Samsung

According to the forecasts of the experts referred to Nikkei Asian Review, the company’s revenue in the third quarter could have grown by 9.3% to $ 62 billion over the same period last year, and operating income could have grown by 26.7% to $ 13.4 billion. the high popularity of the Galaxy Z smartphones with flexible displays introduced in August. In addition, the weakening of the Korean national currency boosted revenue by several percent.

Hanwha Securities expects Samsung to outperform its competitors in the second half of this year due to increased financial returns from the contract business, which focuses on the production of semiconductor components for third-party companies. Samsung reportedly succeeded in attracting two new customers in the past quarter and increasing its product yields. The division’s operating profit could have exceeded 10% as a result, which is very good for the industry.

The release of the vice-president and heir to the Samsung Electronics empire, Lee Jae-yong, helped to approve investment programs that are important for the company’s further development. In the next three years, Samsung expects to invest more than $ 205 billion in its own development and expand its staff by 40 thousand people, with the emphasis on the business of contract manufacturing of chips.

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Johnson Smith

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