Samsung profits expected to increase in Q3 of 2020

Samsung, the South Korean Tech Giant, saw one of its competitors, Huawei, edge slightly ahead in the race towards being the biggest smartphone brand in the world; Huawei claimed the title in the July of this year based on the data collected in Q2 of 2020.

Analysts, however, expect a sizeable recovery from the South Korean company in the third quarter of this year as Samsung’s semiconductor and smartphone business is expected to thrive.

The company’s sales are expected to increase by 20.7 percent and operating profits are expected to be 27.6 percent more than those of Q2 2020.

The company has managed to soldier through the 10-15 percent drop in memory chip prices this year; their revenues haven’t taken a major hit so far and this consistency could be one the reasons it picks up sales and boosts its profits in this third fiscal quarter. According to predictions made, Samsung’s chips business is expected to reach 5 trillion KRW during Q3 of 2020. The chip business has seen a significant increase in profit after the company made deals with two of the industry’s giants: Qualcomm and Nvidia. They (Samsung) will now be producing the entire batch of Snapdragon 875 chips for the year 2021.

Other than chips, Samsung’s smartphone business is also expected to pick up later this year as predictions suggest that sales will reach 4 trillion KRW in Q3, a figure that is double of what the division made in the previous quarter. Smartphone shipments have more than doubled for the company in this third quarter and tablet sales have also gone up by 45 percent.