Samsung posts record profits in the third quarter of 2021, with a 28% jump. According to the manufacturer, this is the highest increase in three years. Rising memory chip prices and sales of displays for the launch of new flagship smartphones have helped in achieving these results.
The shortage of electronic chips obviously impacts many smartphone manufacturers, Samsung in the lead. The South Korean firm was forced to postpone the release of the Galaxy S21 FE due to the difficulties encountered in obtaining the components. In this regard, the S21 FE should also be launched at the same time as the Galaxy S22.
However and despite this complicated situation, Samsung has targeted record sales for its Galaxy Z Fold 3 and Galaxy Z Flip 3, with forecasts set at 6.5 million units sold by the end of 2021. And on Friday, October 8, 2021, Samsung has just confirmed its excellent financial health.
Indeed, the South Korean company has just announced a 28% jump in operating profit in the third quarter of 2021. This is the highest increase in three years. According to the manufacturer, it owes these excellent results to the rise in memory chip prices and sales of screens for the launch of new flagship smartphones.
Samsung posts record profits despite shortages
For example, the world’s largest maker of memory chips and smartphones estimated its July to September profit at 15.8 trillion won, or $ 13.3 billion. This is the highest quarterly profit since the third quarter of 2018. As analysts at Cape Investment & Securities report, higher prices and shipments of memory chips, as well as a jump in profitability of Samsung’s chip outsourcing business, drove up chip division operating profit of about 79% over the previous year.
In addition, semiconductors accounted for about half of Samsung’s operating profit in the first half of the year. Finally, Samsung claimed to have recorded a record turnover of 73 trillion Korean won, or more than 52 billion euros. That is an increase of 9% compared to the previous year.