After the failure of Note 7 last year, the profits of South Korean company Samsung Electronics are showing a sharp recovery. The company said on Friday (October 13th) that it has estimated a threefold increase in profits of the third quarter of the year compared to the previous year, in which computer chip business will be the biggest contributor to the earnings.
According to a report by a news agency, the company said in a regulatory filing that operating profit in the reporting period is estimated at $ 12.8 billion, which was 5,200 billion won in the same period last year.
In the period from July to September, the company’s sales are estimated to increase by 29.65% compared to last year, which is 62,000 billion won.
Though Samsung does not announce the performance of all its business segment separately, it is estimated that Samsung’s record contribution is the biggest contributor to its chip business.
The company will release earnings figures by the end of this month. The guidance report shows that Samsung’s operating profit in the third quarter will increase by 23.4 percent. Analysts say that Samsung’s strong earnings contributed most to the growing sales of the chip.
KB Securities Kim Dong-Won, an analyst of the company, said: “The sale of DRAM and NAND products has increased by 12 percent and 21 percent (in July-September period), while their average sales have been 6 percent and 2 percent respectively.” KB Securities said that the growing sales of Samsung’s Galaxy S8 and Galaxy Note 8 are also contributing to the company’s profits.