Samsung reported decent earnings in the last quarter due to strong sales of semiconductor chips, and this quarter doesn’t look like any different. In fact, it is being reported that the South Korean tech giant could show even better financial results for Q3 2020 due to new chip orders.
According to a new report from Yonhap Infomax, Samsung Electronics could report sales of KRW 63.95 trillion (around $54.5 billion) in the July-September 2020 quarter. If this projection turns out to be true, the company will post 3.1% higher sales than Q3 2019. Samsung’s operating profit for Q3 2020 is estimated to be KRW 10.4 trillion (around $8.86 billion), which would be a whopping 33.7% rise over the same quarter last year.
If the estimates are correct, the company will post its best quarterly results since Q4 2018, when its operating profit was KRW 10.8 trillion (around $9.2 billion). Compared to Q2 2020, the company’s sales are estimated to see a 20.7% jump, and profits are estimated to rise by 27.6%.
Samsung is estimated to have done well in the chip, smartphone, tablet, and TV sales
Samsung will most probably announce its quarterly financial results next week. Despite the decline in memory chip prices, the company is estimated to report higher sales and profits, thanks to Huawei’s rush orders (due to the US ban), and from chip orders from Nvidia and Qualcomm.
The company’s smartphone business is also likely to see higher sales. Analysts predict that Samsung will report sales of 80 million mobile phones during Q3 2020, a 50% rise over Q2 2020. Moreover, tablet sales are estimated to reach 10 million units, a 45% rise over the previous quarter. Apple’s iPhone 12 launch delay and Huawei’s struggles further helped Samsung’s smartphone sales.
Even the sales of consumer electronics, including TVs, are estimated to have grown during the third quarter. Lee Seung-woo, an analyst at Eugene Securities, says that the company’s TV sales could be more than 40% higher than the numbers from Q2 2020. Samsung’s consumer electronics business could report its best quarter since Q2 2016.