Samsung earnings soar on smartphone sales rebound, US sanctions on Huawei
Samsung predicts its profit jumped nearly 60% last quarter, suggesting it could soon retake its position as the world’s top smartphone seller from embattled Chinese rival Huawei.
The South Korean conglomerate said on Thursday that it expects to make an operating profit of roughly 12.3 trillion won ($10.6 billion) for the July-September quarter. That’s up 58% from the same period a year ago. The estimates also beat the 26% profit bump analysts polled by data provider Refinitiv had predicted.
Samsung said it expects sales for the third quarter will rise about 6% to 66 trillion won ($57 billion). Analysts polled by Refinitiv had predicted 63 trillion won in sales ($54.5 billion).
Shares in Samsung were last trading down 0.2% in Seoul.
Samsung, which did not elaborate on earnings, will report full results for the third quarter at the end of this month.
Earlier this year, the company was displaced by Huawei as the world’s top smartphone seller as the coronavirus pandemic weighed on the global economy. Most of Huawei’s sales are in China, which has recovered faster than other countries.
But the slump may now be easing for Samsung, just as fresh sanctions on Huawei leave the Chinese company struggling to survive. Washington says Huawei poses a national security risk and has cut the Chinese company off from key suppliers that use US technology and software. Huawei has repeatedly denied that its products pose national security risks.
For Samsung, a sharp rise in smartphone sales will drive a