Samsung Electronics estimated its July-September earnings rose 25 per cent to a record US$9.4 billion as a strong recovery in memory chip prices helped counter a slowdown in the South Korean company’s smartphone business.
The maker of the Galaxy S4 said its third-quarter operating profit likely increased to 10.1 trillion won (HK$73 billion). The guidance, released ahead of full quarterly results due out by October 25, was better than the average forecast of 9.96 trillion won in a poll of 34 analysts by Thomson Reuters I/B/E/S.
The South Korean firm estimated its third-quarter sales rose to 59 trillion won, versus a market forecast of 60 trillion won.
Samsung, which has reported record earnings every quarter since last year except the first three months of this year, is expected to post another round of record earnings in the current quarter as chip prices extend their gains.
The global memory chip market has rallied since late last year owing to a supply crunch caused by years of cautious investment to support prices, as well as conversion of factory capacity to produce more profitable chips used in smartphones and tablets.
The semiconductor market further tightened after a fire in early September at a plant in China owned by the world’s No 2 memory chipmaker, SK Hynix.