Tech giant Samsung flags 53% jump in Q2 profits

The largest manufactures of mobile phones and smartphones reported a likely 53% jump in second-quarter operating profit. This came after beating market estimates on the back of strong chip prices and demand despite lower smartphone sales.

It said strong demand for memory chips had offset weaker sales of devices due to the shortage of components. 

A year ago, in the first few months of the pandemic, Samsung saw sales of products such as phones and TVs slump.

Since then demand for electronics components has surged as people shifted more of their lives online, while many chip makers struggled to keep up with demand.

In March, Samsung’s co-chief executive and mobile chief, Koh Dong-jin told shareholders: “There’s a serious imbalance in supply and demand of chips in the IT sector globally.”

He also said that the company was working with overseas partners to meet demand as global shortages caused supply disruptions.

The world’s largest memory chip and smartphone maker said profit for the quarter ended June 30 was likely 12.5 trillion won ($11 billion), well above a Refinitiv SmartEstimate of 11.3 trillion won. If confirmed later this month, it would be the tech giant’s biggest second-quarter profit since 2018.

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