(Seoul) Samsung Electronics expects operating profit to rise 52.5% in the fourth quarter of 2021, galvanized by record sales, the South Korean giant said in a statement on Friday.
The world’s largest smartphone maker is forecasting operating profit for the fourth quarter of about 13.8 trillion won ($ 11.5 billion), up from 9.0 trillion won in the same quarter last year.
This result, however, fell short of the expectations of analysts who had expected a figure of 15.2 trillion won, according to financial agency Bloomberg News.
The mobile phone giant’s sales during the same period reached a record high of 76 trillion won, an increase of 23.5% year on year. And sales for the whole of 2021 are also expected to reach an all-time high, according to a spokesperson interviewed by AFP.
The title Samsung Electronics rose 1.4% during the first trades Friday on the Seoul stock exchange.
The COVID-19 epidemic and its multiple confinements or telecommuting obligations have boosted the activity of many technology firms like Samsung. The group should also benefit from year-end sales, analysts said.
“A continuous rise in the price of memory chips, over three consecutive quarters until October 2021, has favored the good results of Samsung,” said Park Sung-soon, an analyst at Cape Investment & Securities. “The most important source of revenue for Samsung comes from the electronic chip-memory business,” he added.
Full results
Samsung Electronics has not provided details on the performance of its various divisions, but the firm is expected to do so on January 27 by releasing its full results.
Samsung Electronics, which is also the world’s largest manufacturer of memory chips, has sharply increased its investments in this sector as the world faces shortages of these electronic chips, which are vital for a large number of equipment, including cars. to household appliances, including telephones or game consoles.
In November, the group announced the opening of an electronic chip factory in Texas, an investment worth $ 17 billion. This plant should be operational by the end of 2024.
It thus joined its Taiwanese competitors TSMC and American Intel to develop the production capacity of electronic chips in the United States in the face of the rise of China in this field.
Samsung is also investing in the development of advanced technologies such as artificial intelligence, robotics or 5G / 6G in the field of telecommunications.
Samsung Electronics is by far the largest subsidiary of the Samsung group, one of those family empires known as the Chaebol that dominate the corporate world in South Korea.
The group’s global turnover is equivalent to one fifth of the Gross Domestic Product (GDP) of this Asian country.