South Korea electronics giant Samsung Electronics estimated that its operating for the third quarter jumped 20% to a new record high, with the company's semiconductor unit boosted by strong demand from data centers as well as gains in its production yields. It expects revenue to reach 65 trillion KRW ($57.5 billion), a YoY increase of 5 percent. The operating profit soared to a record high of KRW 17.5 trillion from 14.53 trillion year-on-year and 14.87 trillion quarter-on-quarter.
That compares with the 17.2 trillion-won average of estimates compiled by Bloomberg. That compared with a 15.9 trillion won forecast from 11 analysts. However, it's reasonable to assume that Samsung's display business played a big role.More news: NZDF arrives in Indonesia with emergency aid after tsunami
Koh added that Samsung was close to concluding the development of a foldable smartphone and would be ready to unveil it this year. Lower than expected sales of its flagship Galaxy S9 ensured this prediction came to pass, with the quarter bringing Samsung's slowest profit growth in more than a year. Samsung's chip-making unit was estimated to have posted 13.5 trillion won (11.9 billion US dollars) of operating profit in the third quarter on revenue of 25.5 trillion won (22.6 billion USA dollars).
Samsung Electronics has released its regular financial guidance ahead of the Q3 earnings report that's expected later this month.More news: Manchester United 3-2 Newcastle: THINGS YOU MISSED
So much so that the company has released some projections for Q3 2018.
Operating profit in the IT and mobile unit, which makes smartphones, was estimated at about 2 trillion won (1.77 billion USA dollars) in the quarter on weak demand for Samsung's new flagship smartphones released this year. It launched the Galaxy Note 9 in August but has been beset by intensifying competition in global markets, notably from cheaper Chinese rivals. Samsung's shares have fallen more than 12pc since the start of the year. While contract prices for 32-gigabyte DRAM server modules fell 0.1% in the three months ended September, that was the first quarterly decline since 2016, according to InSpectrum Tech Inc.More news: LG unveils V40 ThinQ with 5 cameras