Business has been booming for Samsung Electronics. Even as some of its other divisions come under pressure, the semiconductor division has been raking in the cash. A variety of factors have contributed to its rising profits.
The global semiconductor shortage is one of them. As demand remains high, the average selling price of semiconductor products has steadily increased. This has enabled Samsung to increase its profits considerably. Market analysts expect Q3 2021 will be one of Samsung’s best quarters yet.
This could be one of Samsung’s best quarters yet
Analysts project that Samsung will report 16.3 trillion won or almost $13.8 billion in operating profit for the July-September 2021 period. This will represent a 31.9 percent jump compared to the same period last year.
Samsung is projected to post a 12.2 percent increase in sales to 75.1 trillion won or almost $70 billion in Q3 2021. Compared to Q2 2021, Samsung’s operating profit and revenues will be up an impressive 29.7 and 18 percent respectively.
Enhanced yield rates and the continued price increase for memory chips is likely what enabled Samsung to make a truckload of money this quarter. The chip business alone is expected to account for the vast majority of the operating profit.
Samsung recently took back the world’s biggest chip seller crown from Intel. Market analysts expect the company to retain the crown as it’s likely to have made $22.32 billion in semiconductor sales during Q3 2021.
The mobile division is also expected to have done well in this quarter. It may report better earnings than the previous quarter with an increase in shipments and average selling price due to the new foldable smartphones.
Samsung will announce its official Q3 2021 earnings guidance at some point in the coming week.