Financial Archives - Gizmochina

Samsung Electronics indicates 28% growth in operating profit in Q3 2021

Jeet — Fri, 08 Oct 2021 03:47:40 +0000

Samsung Electronics has announced that the company’s operating profit in the third quarter of this year rose by around 28 percent — the highest growth for the South Korean giant registered in three years.

Semiconductors accounted for about half of Samsung’s operating profit in the first half of the year. The rise in the operating profit is likely because of the rising prices of memory chips in the market and the spike in sales for display, catering to the need of smartphone manufacturers for their flagship models.

Samsung estimated that its profit in the third quarter of this year, meaning in the months of July to September, could stand at 15.8 trillion won, which is approximately $13.3 billion. The numbers are below the estimate of 16.1 trillion won by Refinitiv SmartEstimate.

According to industry analysts, the rising memory chip prices and shipments, along with a jump in profitability at Samsung’s chip contract manufacturing business, likely raised the chip division’s operating profit by about 79 percent from a year earlier.

Samsung also benefited from the demand for its recent foldable smartphones and is increasing its market share in this category. The company reportedly sold over two million units of its new flagship smartphones within a month.

The company’s operating profit for the current quarter is expected to be similar or slightly below the third quarter. Analysts are pointing to expectations that prices for memory chips used in personal computers will tumble from the fourth quarter as global lockdowns ease, and the smartphone shipments may also decline.

Samsung’s chip manufacturing business is also showing positive signs and the company recently announced that it’ll start working on the 3nm process for smartphone chips from next year and will shift to the 2nm process in 2025.

Samsung expected to report its best quarterly profit in 3 years

Jeet — Wed, 06 Oct 2021 05:20:51 +0000

Samsung Electronics is one of the world’s largest technology company and it seems that the South Korean giant is gearing up to announce its best quarterly profits in three years with record revenue figures.

According to the estimates by analysts, the company is likely to post record revenue on rising memory chip prices and the rising sales of its newly released foldable smartphones — Galaxy Z Fold3 and Galaxy Z Fold3. In fact, it has been confirmed that the company has sold more than a million units of these two smartphones in South Korea so far.

A report of Refinitiv SmartEstimate (via Reuters) from 16 analysts claims that the operating profit for the world’s biggest memory chip and smartphone maker likely jumped to 16.1 trillion won (approximately $14 billion) in the quarter ended September.

If that turns out to be true, then the company is on track to report a 30 percent hike from 12.35 trillion won that it posted a year earlier and the highest since the third quarter of 2018. It is said that the revenue likely rose 11 percent to 74.6 trillion won.

The global shortage of semiconductors has led to price rise amind the COVID-19 pandemic, and as a result, Samsung soared 45% last year and hit a record high at the start of 2021.

Now, with the situation slowly getting in control, the prices for the semiconductor are expected to tumble after peaking in July-September and that outlook has contributed to the falling of Samsung’s stock.

Samsung Q2 2021 profit likely jumped 38% due to strong chip prices

Jeet — Tue, 06 Jul 2021 02:47:24 +0000

The South Korean technology giant Samsung Electronics likely saw a surge of 38 percent for the second quarter of this year, i.e. Q2 2021, thanks to the increased and strong pricing for the chipsets in the market.

Demand for consumer electronics spurred, leading to the high demand for chips, creating a global shortage, leading to price hikes. This, along with recovering investment in data centers has resulted in good operating profit for the firm.

The report coming from Reuters adds that the operating profit for the world’s biggest memory chip and smartphone maker likely jumped to 11.3 trillion won ($10 billion), according to a Refinitiv SmartEstimate drawn from 20 analysts.

Prices of DRAM chips, widely used in servers, mobile phones, and other computing devices, jumped 27 percent compared to the March quarter, while those of NAND flash chips that serve the data storage market rose 8.6 percent, according to research provider Trendforce.

Profit also improved at Samsung’s chip-contract manufacturing and logic chip design business, partly because operations at its storm-hit Texas factory returned to normal. The estimated chip division’s operating profit in April-June rose about 22% from the year-earlier period to about 6.6 trillion won.

However, Samsung’s smartphone shipments dropped to about 59 million in April-June from about 76 million in the first quarter, according to Shinyoung Investment & Securities. Reduced demand from India, hard hit by the pandemic during the quarter, as well as tight supply for some mobile processor chips may also have affected shipments.

The strong performance of Samsung is coming despite the company shipping fewer smartphones than in January-March. This underscores the stratospheric demand for chips that have depleted stockpiles and filled production capacity.

It is said that the result would be up 20 percent from the first quarter and mark Samsung’s highest operating income in the second quarter since 2018 as the revenue is likely to rise by 15.4 percent. Samsung is scheduled to announce preliminary second-quarter results on Wednesday, i.e. 7th July.

Coolpad reveals financial data for 2020; reports 56.3% decline in consolidated income

Jeet — Mon, 29 Mar 2021 11:23:39 +0000

Coolpad, the China-based smartphone manufacturer, has revealed the financial data for the year 2020. It revealed that the group generated a consolidated income of HK$817.6 million during the whole year.

The numbers represent a decline of 56.31 percent year-on-year and the company mainly attributes it to the COVID-19 pandemic. The company also said that because of this, it postponed the launch of several smartphone models. This further added to the substantial decrease in the sales.

It adds that the pandemic has disrupted the supply chain and the price rise in several components caused the company’s expenses to rise. In order to cut down the cost and reduce potential risk, Coolpad says that it is gradually shifting from the overseas market and will be focusing more in the home market, China.

The company hasn’t launched any major products in recent times. Last year, it also withdrew a series of patent infringement lawsuits that the company had filed against another Chinese brand Xiaomi.

Earlier this year, in January, it launched the Coolpad Cool S smartphone in Nepal, and around the same time, the company had launched the Cool Bass, true wireless earphones in the Indian market. But there have been no major announcements from the company and going by the financial situation of the brand, it will be interesting to see how it manages to re-establish itself in the market.