telecommunications
Samsung expects strong growth
According to Samsung, the profit from the core businesses is expected to amount to around 10.2 billion euros. Photo: Joe Buglewicz / AP / dpa
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In its earnings outlook for the quarter, Samsung anticipates a full year-on-year increase in operating profit for memory chips, smartphones and televisions.
The high demand for chips for data centers brought the electronics giant Samsung strong growth in the final quarter of 2021.
In its earnings outlook for the quarter, the world market leader in memory chips, smartphones and televisions anticipates an increase in operating profit of 52.5 percent year-on-year and a record quarterly turnover. The profit from the core businesses is expected to amount to 13.8 trillion won (about 10.2 billion euros), said the South Korean company.
Samsung expects sales to rise by 23.5 percent to 76 trillion won (55.9 billion euros). Already the revenue of 74 trillion won in the months of July to September meant a quarterly record for the company. Samsung traditionally does not present exact business figures until a later point in time.
The semiconductor business in particular has recently increased significantly due to the strong demand for data centers. According to market observers, Samsung also benefited from the fact that the decline in average sales prices for DRAM memory chips and NAND flash memory was less than expected. Flash chips are mainly used in mass storage devices such as USB sticks and camera memory cards. Samsung’s earnings estimate was still below market expectations.
The estimates for the fourth quarter also include a one-time special bonus for all employees, it said. According to its own information, Samsung Electronics employs a total of almost 268,000 people worldwide (as of December 2020).