Samsung reports robust profit thanks to chip demand

SEOUL, South Korea , Samsung Electronics reported Thursday its highest quarterly profit for three years. This is despite continuing strong global demand for its computer memory chip.

Samsung reports robust profit thanks to chip demand

SEOUL, South Korea , Samsung Electronics reported Thursday its highest quarterly profit for three years. This is despite continuing strong global demand for its computer memory chip.

South Korean technology giant Samsung also claimed that its July-September revenue of 74 trillion won ($63billion) was a quarterly record. Operating profit rose 26% to 15.8 trillion won ($13.48 million) in the quarter before, a record the company attributes to favorable market conditions that led to higher semiconductor prices and shipments.

Samsung saw a rise in sales of its premium TVs and smartphones, but rising raw material costs impacted profitability.

Samsung's strengths in both parts and finished products have allowed it to prosper during the pandemic. This increased demand for memory chips was due to millions of people being forced to work from home.

However, the company said it was dealing with "longer-than-expected" component shortages that may affect the demand for semiconductors during the current quarter.

The company also stated that it expected TV demand to decrease in the next months due to people spending less time at home and loosening social distancing rules.

You need to login to comment.

Please register or login.

RELATED NEWS