Samsung Reports 28% Jump in Profit

Technology

October 28th, 3:53am

Asharq Al-Awsat

FILE PHOTO: The logo of Samsung Electronics is seen at its office building in Seoul, South Korea, March 23, 2018. REUTERS/Kim Hong-Ji

South Korean tech giant Samsung Electronics posted a 28-percent jump in operating profit on Thursday despite global supply chain challenges caused by the pandemic. The world's top chipmaker saw its operating profit reach 15.8 trillion won ($13.5 billion) for the July-September period, it said in a regulatory filing. Its sales rose 10 percent on-year to a record 74 trillion won on the back of strong performance from its memory chip division thanks to sustained global demand. "Favorable market conditions continued in the memory market" resulting in "robust sales", the company said in a statement. Operating profits generated from its semiconductor business accounted for over 60 percent of the total, illustrating the major role the division plays to the sprawling group. While the coronavirus pandemic has wreaked havoc on the world economy, it has helped many tech companies boom. Pandemic-driven working from home has boosted demand for devices powered by Samsung's chips, as well as home appliances such as televisions and washing machines. Consumer demand for high-end products such as foldable phones is also expected to further boost profits going into the holiday season, said Loo Wee Teck, global head of consumer electronics at Euromonitor. "Its foldable phones will continue to be Samsung's halo product and a profit haven as there is nearly no competition... as we move into the critical holiday season," AFP quoted him as saying. But the firm has acknowledged it would continue to be affected by supply shortages for memory chips, noting "a longer-than-expected component supply issue may need to be monitored". Supply chain problems are hitting economic activity around the world, with companies facing shortages of key commodities, components and shipping capacity. Samsung Electronics is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled empires known as chaebols that dominate business in South Korea, the world's 12th largest economy. The conglomerate's overall turnover is equivalent to one-fifth of gross domestic product. Samsung Electronics shares were up 0.3 percent in morning trade in Seoul.

from Asharq AL-awsat https://english.aawsat.com/home/article/3271306/samsung-reports-28-jump-profit