{"id":150663,"date":"2021-01-08T12:12:20","date_gmt":"2021-01-08T09:12:20","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/samsung-electronics-forecasts-25-7-jump-in-q4-operating-profit\/"},"modified":"2021-01-08T12:12:20","modified_gmt":"2021-01-08T09:12:20","slug":"samsung-electronics-forecasts-25-7-jump-in-q4-operating-profit","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/samsung-electronics-forecasts-25-7-jump-in-q4-operating-profit\/","title":{"rendered":"#Samsung Electronics forecasts 25.7% jump in Q4 operating profit"},"content":{"rendered":"

“#Samsung Electronics forecasts 25.7% jump in Q4 operating profit<\/strong>”<\/p>\n

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\"Samsung
\n Samsung Electronics, the world’s biggest smartphone and memory chip maker, is crucial to South Korea’s economic health
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South Korean tech giant Samsung Electronics flagged a jump of more than 25 percent in fourth-quarter operating profit Friday, with pandemic-induced working from home driving demand for devices powered by its chips.<\/p>\n

The world’s biggest manufacturer of smartphones and memory chips said in an earnings estimate that it expected operating profit of 9 trillion won ($8.23 billion) for October to December, up from 7.16 trillion won a year earlier.<\/p>\n

The prediction was slightly short of analyst forecasts of 9.34 trillion won, compiled by market researcher FnGuide, but Samsung shares jumped on the news<\/a>, closing 7.12 percent higher in Seoul.<\/p>\n

The coronavirus pandemic has wreaked havoc with the world economy, but has also seen many tech companies boom.<\/p>\n

LG Electronics, South Korea’s second-largest app<\/a>liance firm after Samsung, forecast its highest-ever fourth-quarter operating profit on Friday, projecting it would soar more than five-fold year-on-year to 647 billion won.<\/p>\n

And South Korea as a whole saw a return to quarter-on-quarter growth in Q3 last year, driven by a better-than-expected exports performance. <\/p>\n

Samsung Electronics is crucial to the country’s economic health\u2014its overall turnover is equivalent to a fifth of the national gross domestic product.<\/p>\n

It is the flagship subsidiary of the giant Samsung group, by far the largest of the family-controlled conglomerates known as chaebols that dominate business in the world’s 12th-largest economy.<\/p>\n

Samsung’s operating profit and 61-trillion-won sales forecast were both lower than its third-quarter figures, when its mobile and chip businesses were boosted by US sanctions against Chinese tech giant Huawei.<\/p>\n

Analysts say a stronger won, and rival Apple’s October launch of its flagship iPhone 12, were among the factors behind the quarter-on-quarter decline in profits.<\/p>\n

“Samsung’s midrange and value smartphones account for about 80 percent of its mobile sales,” said Jusy Hong, a director at market researcher Omdia.<\/p>\n

“But Chinese firms\u2014such as Xiaomi, Vivo and Oppo\u2014have also been expanding their share in the midrange phone market, in regions including India and Southeast Asia.”<\/p>\n

Leader’s retrial<\/b><\/p>\n

Looking forward, analysts said the company’s outlook for 2021 was fairly stable, driven by continued demand for memory, and growth in the consumer electronics and chip-manufacturing businesses.<\/p>\n

They also expected Samsung’s mobile business to improve, with the firm unveiling its latest lineup of flagship Galaxy phones next week.<\/p>\n

Meanwhile, the global chip-manufacturing industry is expected to see record revenue this year, with the stay-at-home economy persisting because of the pandemic, according to Taipei-based market tracker TrendForce.<\/p>\n

“2021 will be a year for the growth of Samsung foundry (chip-manufacturing) business,” Sujeong Lim, an analyst at market observer Counterpoint, told AFP.<\/p>\n

“Demand for semiconductors such as 5G, IoT (Internet of Things), and high-performance smartphones is exploding.”<\/p>\n

The Q4 figures come about two months after the burial of late chairman Lee Kun-hee, who turned Samsung Electronics into a global powerhouse.<\/p>\n

But his son, and the firm’s de facto leader, Lee Jae-yong, is awaiting the verdict in his retrial over a sprawling corruption scandal, which could see him return to prison.<\/p>\n

The ruling is due later this month and a conviction could deprive the firm of its top decision-maker after prosecutors requested a nine-year jail term.\n <\/p>\n\n

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Samsung flags near-60% operating profit jump after Huawei boost\n <\/p><\/div>\n

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\n \u00a9 2021 AFP<\/p>\n

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Citation<\/strong>:
\n Samsung Electronics forecasts 25.7% jump in Q4 operating profit (2021, January 8)
\n retrieved 9 January 2021
\n from https:\/\/techxplore.com\/news\/2021-01-samsung-electronics-q4-profit.html<\/p>\n

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