Why it matters: Despite the lack of chips around the world, Samsung appears to be safe from the current situation affecting the bottom line. The tech giant expects to post its best quarterly earnings in the past three years in addition to its sales.
South Korea's largest conglomerate said in its earnings report (via the Financial Times) that it generated a profit of 15.8 trillion won ($13.2 billion) between July and September 2021, up 28 percent year-on-year. annual basis. The past shows an increase. This is the largest number since the company's third-quarter earnings in 2018. Semiconductor prices are rising at a time when global shortages are helping to boost revenue. Samsung, the world's largest maker of smartphones and memory chips, reported 9% sales growth to a record 73 trillion won over the past year. As the demand for consumer electronics increases during quarantine, so does the demand.
As progress progresses, forecasts are less optimistic. While some companies may have chips in stock, chip prices are expected to continue to rise, and shortages are likely to continue until 2022 (even beyond 2022 for the auto industry).
< Kim Jong said Wu, an analyst at SK Securities, "With the KOD era, as more people return to normal, the demand for electronics such as laptops and televisions will weaken," and it will also increase production costs, which in turn will reduce demand. Those profits, however, were boosted by the smartphone's recent success of 3.2 trillion won in the previous quarter, with nearly 2 million Galaxy Z Fold 3 and Z Flip 3 models sold since its launch in August. Costs, and a lack of chips weighed on production, with analysts saying Samsung's total smartphone sales in the third quarter totaled 69 million. With 80 million in 2020 Dr. US suppliers have reportedly rejected the company's request for more chips, and even Samsung has gone so far as to apparently leave the VP in the country for three months to find a solution.
Lack of chips? Samsung recorded the highest profit in the last 3 years