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By Joyce Lee and Heekyong Yang



FILE PHOTO: The logo of Samsung Electronics is seen at its office building in Seoul


© Reuters/Kim Hong-Ji
FILE PHOTO: The emblem of Samsung Electronics is seen at its workplace constructing in Seoul

SEOUL (Reuters) -Samsung Electronics Co Ltd mentioned on Friday its third-quarter working revenue possible rose 28% to the very best in three years, pushed by rising reminiscence chip costs and show gross sales for smartphone makers’ new flagship launches.

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The world’s largest reminiscence chip and smartphone maker estimated its July-September revenue at 15.8 trillion received ($13.3 billion), barely beneath a Refinitiv SmartEstimate of 16.1 trillion received. It’s highest quarterly end result because the third quarter of 2018.

“The cell enterprise’ working margin may need been decrease than the market anticipated,” mentioned Park Sung-soon, analyst at Cape Funding & Securities. “We must see advertising prices and what the combination of merchandise Samsung bought 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 beneficial properties after its preliminary earnings launch to be up 0.7% in morning commerce. It is because of announce detailed earnings later this month.

Video: Samsung set for finest quarterly revenue in 3 years (Reuters)

Samsung set for finest quarterly revenue in 3 years

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The inventory has fallen about 12% to this point this 12 months versus a 3% rise within the wider market, harm by losses in September when U.S. peer Micron Expertise Inc mentioned https://www.reuters.com/know-how/us-chipmaker-micron-forecasts-first-quarter-revenue-below-estimates-2021-09-28 its reminiscence chip shipments would slip within the close to time period.

Samsung’s present quarter working revenue is anticipated to be much like or barely beneath the third quarter, analysts mentioned, pointing to expectations that costs for reminiscence chips utilized in private computer systems will tumble from the fourth quarter as world lockdowns ease, whereas smartphone shipments can also decline.

A shiny spot subsequent 12 months is anticipated 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 towards business chief Taiwan Semiconductor Manufacturing Co Ltd to preempt superior know-how and win purchasers.

For Samsung’s cell enterprise, estimated gross sales of two million https://www.reuters.com/know-how/samsung-electronics-likely-report-best-quarterly-profit-3-years-2021-10-05 new flagship smartphones inside a month confirmed demand for its foldable handsets captured extra of the mass market than final 12 months, analysts mentioned.

Nevertheless, this was possible offset by advertising prices and better element prices because of the world chip scarcity.

Samsung’s show unit possible noticed stable outcomes as key buyer Apple Inc ramped up orders earlier than its late-September launch of the iPhone 13 collection, analysts mentioned.

Total income possible rose about 9% from the identical interval a 12 months earlier to a report 73 trillion received, Samsung mentioned in a submitting.

($1 = 1,191.2500 received)

(Reporting by Joyce Lee and Heekyong Yang; Modifying by Christopher Cushing and Richard Pullin)

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