Samsung Q3 profit rises by 58%

The South Korean tech giant expects to see profit rise in nearly all of its businesses for the third quarter.

Samsung Electronics has posted an operating profit of 12.3 trillion won and sales of 66 trillion won in the third quarter, the company said in its preliminary guidance issued on Thursday.

It is an increase of 58% in operating profit from the same time period a year ago, while sales rose slightly year over year.

It beats South Korean analysts' consensus of 10.26 trillion won. It is also the company's best performance since the third quarter of 2018.

Samsung's three main businesses -- smartphones, consumer electronics, and semiconductors -- are all expected to have had solid performances during the quarter.

The company's smartphone operation, in particular, is expected to have benefitted from the launch of the Galaxy Note 20 series and solid sales from its mid-tier Galaxy A series.

Samsung's TVs and home appliances are also expected to post strong sales figures due to pent-up demand, with various major economies relaxing their lockdown measures against the COVID-19 pandemic during the quarter.

Both the smartphone and consumer electronics businesses are expected to have saved costs in offline marketing due to the pandemic.

For Samsung's semiconductor business, memory products are expected to have solid sales from server demand, while the logic chip business likely benefited from its customers launching new chips.

The display unit is also expected to turn a profit due to the launch of new smartphones from clients in the third quarter.

The full earnings will be announced at the end of the month.

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