Samsung profits likely at two-year high [Video]

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

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Samsung Electronics profit likely at two-year high after Huawei chip orders, phone recovery

SEOUL (Reuters) – Samsung Electronics Co Ltd’s third-quarter profit likely jumped 58% to its highest in two years, beating analyst estimates as U.S. restrictions on China’s Huawei boosted the South Korean tech giant’s phone and chip sales.

U.S. action against Huawei Technologies Co Ltd has dampened demand for its phones outside of China, giving a leg up to Samsung, analysts said, while the Chinese firm also hurried to order more chips from Samsung after Washington moved to choke its access to commercially available chips from mid-September.

Samsung said on Thursday operating profit was likely 12.3 trillion won ($10.6 billion) for the three months ended September, well above a Refinitiv SmartEstimate of 10.5 trillion won. It would be the strongest result since 17.57 trillion won in the third quarter of 2018.

Revenue likely rose 6% from the same period a year earlier to 66 trillion won,

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