Samsung says profits probably increased, but competition from smartphones is fierce

by

The South Korean conglomerate said on Friday that it expects to make an operating profit of about 9 trillion Korean won ($ 8.2 billion) for the October-December quarter, up from the same period last year above, but somewhat out of analysts ’estimates.

Samsung reports blatant profits, but warns of falling ahead

The company predicted sales of about 61 trillion won from Korea ($ 56 billion), in line with the expectations of analysts surveyed by Refinitiv.

From Samsung (SSNLF) shares rose about 1.8% in Seoul on Friday.

The company did not delve into the results, but will report full results for the fourth quarter later this month.

While demand for some electronic components and other Samsung components, such as display panels, is likely to remain solid, the company faces stiff competition in the smartphone market. Chinese rival Huawei briefly overtook Samsung last year to become the world’s largest smartphone vendor, while Apple has just launched a 5G-compatible iPhone.

Still, analysts expect earnings in 2021 to be strong as sales of smartphones and memory chips increase. Daiwa analyst SK Kim pointed to the upcoming launch of the Samsung Galaxy S21 as a bright spot.

“We see [Samsung] the launch of the Galaxy S series, its key flagship line, before the end of January 2021, which we believe will cause a strong rebound in smartphone shipping, ”Kim wrote in a research note earlier this week.

.Source