Electronics giant Samsung announced Thursday its third-quarter profit has likely jumped to its highest in two years, beating analysts’ already-high expectations.

The South Korean tech company said operating profit was likely more than 10 billion dollars for the three months ending in September.

Analysts had predicted a surge in profits thanks to recovery of smartphone sales and a rush order of chips from Huawei.

Samsung’s smartphone shipments jumped to around 80 million from just 54.2 million in the previous quarter.

Analysts attribute that to a rebound in demand after the contraction brought about by the health crisis in the first half of 2020.

While weaker prices pressured Samsung’s overall chip business, they also saw a boost in orders for graphics and mobile chips, including from Chinese smartphone maker Huawei.

Industry sources say Huawei had been building stockpiles before U.S. restrictions imposed around mid-September prevented it from buying chips made with American technology without a license.

And Samsung’s appliances business also likely got a lift from consumers stuck at home, willing to spend more on products that make their homes cleaner.

Video Transcript

Electronics giant Samsung announced Thursday its third-quarter profit has likely jumped to its highest in two years, beating analysts’ already high expectations. The South Korean tech company said operating profit was likely more than $10 billion for the three months ending in September.

Analysts had predicted a surge in profits, thanks to recovery of smartphone sales and a rush order of chips from Huawei. Samsung smartphone shipments jumped to around 80 million from just 54.2 million in the previous quarter. Analysts attribute that jump to a rebound in demand after the contraction brought about by the health crisis in the first half of 2020.

While weaker prices pressured Samsung’s overall chip business, they also saw a boost in orders for graphics and mobile chips, including from Chinese smartphone-maker Huawei. Industry sources say Huawei had been building stockpiles before US restrictions imposed around mid-September prevented it from buying chips made with American technology without a license. And Samsung’s appliances business also likely got a lift from consumers stuck at home, willing to spend more on products that make their homes cleaner.

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