Samsung operating profits half for 3rd quarter in a row
Samsung’s shares have jumped 2.41 per cent despite posting a 56 per cent dive in operating profits amid its third quarter results.
Samsung Electronics has projected a 56 per cent drop in operating profits to 7.7 trillion won (£5.23 billion) for the three months to the end of September.
Despite the significant decline, the results came comfortably above analysts’ expectations, who predicted operating profits to come in at 6.4 trillion won (£4.4 billion).
Meanwhile its consolidated sales dropped 5.3 per cent to 62 trillion won (£4.2 billion) over the same period.
Should these projections materialise when Samsung releases detailed figures later this month, it will mark the third consecutive quarter that the tech giant’s operating profit more than halved.
It did benefit from the US sanctions against Chinese rivals in the smartphone market seeing a boost in its mobile business and strong sales of its Galaxy Note 10.
Samsung also supplies the OLED screens for Apple’s new iPhone 11, which launched last month providing yet another much needed boost for the retailer.
This drop is once again due to an ongoing slump in the price of memory chips, which make up the bulk of Samsung’s profits.
However the both Samsung and analysts believe this slump is nearing the end of its cycle, leading to a more positive outlook for the Korean giant.