- Samsung’s operating profit would likely go down by 56 per cent
- The operating profit for the July to September quarter was likely 7.7 trillion
- The revenue likely fell 5.3 percent to 62 trillion from 65.5 trillion a year ago
- Samsung’s operating profit is likely to fall again because of the Sino-US trade war
Samsung Electronics has reported its earnings guidance for the third quarter of 2019. The company said that the operating profit would likely go down by 56 per cent. The estimates made by the company are better than what analysts were expecting.
The company informed that the operating profit for the July to September quarter was likely 7.7 trillion. The revenue likely fell 5.3 percent to 62 trillion from 65.5 trillion a year ago. The company claimed that it has sold more than 1 million 5G handsets in South Korea.
Estimate exceeds expectations
Analysts told Business Standard that Samsung benefited from the U.S. sanctions on Huawei Technologies Co Ltd that effectively bar U.S. firms from supplying its Chinese rival.
Park Sung-soon, an analyst at Cape Investment & Securities told the news daily that Samsung would likely enjoy its popularity in Europe’s smartphone market as long as the Huawei ban lasts and could even lure back European customers who once left for Huawei.
He further stated that Samsung’s mobile business is far smaller than its memory chip business, accounting for about 20 per cent of profit. Data centre customers are pursuing conservative investment for the time being, not particularly uplifting news for Samsung.
The company has not announced a particular date for its third-quarter earnings. Analysts predicted that Samsung’s operating profit is likely to fall again because of the Sino-US trade war which reportedly hit the component sales of the company.
