Samsung Electronics expects its profits to triple in the last three months of last year.
The company estimates its operating profit for the fourth quarter at around 20 trillion won, with consolidated sales are expected to reach about 93 trillion won.
This would be the highest quarterly profit in Samsung’s history, beating its previous record of 17.6 trillion won set in the third quarter of 2018.
Samsung Electronics expects its profits to triple in the last three months of last year, hitting a record high. In its earnings guidance, the South Korean company estimated its operating profit for the fourth quarter at around 20 trillion won. Consolidated sales for the period are expected to reach about 93 trillion won. If confirmed, this would be the highest quarterly profit in Samsung’s history, beating its previous record of 17.6 trillion won set in the third quarter of 2018, reports CNBC. The surge is mainly linked to booming demand for memory chips used in AI systems.
SurveyMarket research firm Counterpoint Research recently said the memory industry has entered what it called a “hyper-bull” phase. “The memory market has entered a ‘Hyper-Bull’ phase, with current conditions eclipsing the historic 2018 peak. Supplier leverage is at an all-time high, driven by an insatiable demand for AI and server capacity,” the research firm said.
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According to the firm, memory prices jumped by about 40 percent to 50 percent in the last quarter of last year and are expected to rise by a similar amount in the first quarter of this year. Prices may then climb another 20 percent in the second quarter. While higher memory prices have raised costs for many electronics makers, they have strongly benefited major memory producers such as Samsung, SK Hynix, and Micron. Samsung’s shares have risen more than 145 percent over the past year. On Thursday, the stock was up slightly in unstable trading.
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Samsung plans to release its final, audited earnings and hold its quarterly earnings call later this month.
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Ayushi Jain
Ayushi works as Chief Copy Editor at Digit, covering everything from breaking tech news to in-depth smartphone reviews. Prior to Digit, she was part of the editorial team at IANS. View Full Profile
