Thanks to a tough competitor, Samsung reported a record profit

Samsung Electronics recently reported better business results than analysts expected as the South Korean giant benefited from US sanctions on Huawei.

Specifically, the maker of memory chips and electronic devices posted an operating profit of 12.3 trillion won ($ 10.6 billion) in the three months ending September, exceeding the 10 trillion forecast forecast. Previous analysts’ won. Sales for the quarter reached 66 trillion won. The company currently does not disclose net profit or disclose business results for each segment. The detailed numbers will be released later this month when the final report is released.

Immediately after the positive news, the company’s share price rose 1.3% in Seoul on Thursday.

Samsung’s business results outperformed its competitors.

Huawei overtook Samsung as the world’s largest smartphone maker in the second quarter of this year, but the South Korean giant is expected to regain its throne soon as Huawei cannot access most of the spirits. Advanced accessories that come with Android devices.

Samsung is also expanding its market share in India – where consumers have a wave of boycott of Chinese goods due to political conflicts between the two countries. Samsung’s memory chip business also benefited after Huawei had to stockpile large amounts of semiconductors before US sanctions were triggered.

With Apple’s plans to launch a 5G iPhone delayed to October and Huawei grappling with so many difficulties, Samsung is having an easier quarter than ever to compete in the mobile space. Even so, the company has significantly improved profits by reducing marketing costs during the pandemic.

“Samsung will see higher margins in 2021 as Huawei continues to struggle,” said Lee Su-bin, an analyst at Daishin Securities. He added that Samsung will benefit from the rapid introduction of 5G and new focus on folding phones. He predicts Samsung will report sales of 80.6 million smartphones in Q3 – up 49% from Q2.

Samsung’s products vary from the Galaxy Z Fold 2 line of $ 1,999 to Galaxy A …

Demand for mobile memory chips will also increase slightly in the fourth quarter as Apple’s iPhone launches, and Chinese rivals such as Oppo and Vivo step up their order to bring new products to market to seize opportunities. market share of Huawei.