Samsung says profits have likely increased, but competition from smartphones is fierce



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The South Korean conglomerate said on Friday it expects to post operating profit of around 9 trillion Korean won ($ 8.2 billion) for the October-December quarter, an increase from the same period a year earlier, but somewhat different from analysts’ estimates.

Samsung reports windfall profits but warns of coming crisis

The company forecast sales of some 61 trillion Korean won ($ 56 billion), in line with the expectations of analysts polled by Refinitiv.

Samsung (SSNLF) The stock rose about 1.8% in Seoul on Friday.

The company has not specified its earnings, but will release full fourth quarter results at the end of this month.

While demand for certain electronics and other components from Samsung, such as display panels, will likely remain strong, the company faces stiff competition in the smartphone market. Chinese rival Huawei briefly overtook Samsung last year to become the world’s leading smartphone seller, while Apple has just released a 5G compatible iPhone.

Still, analysts expect earnings in 2021 to be strong as sales of smartphones and memory chips increase. Daiwa analyst SK Kim pointed to the upcoming release of the Samsung Galaxy S21 as a bright spot.

“We see [Samsung] the launch of the Galaxy S series, its flagship line, earlier than before by the end of January 2021, which we believe will lead to a strong rebound in smartphone shipments, ”Kim wrote in a research note earlier this week.

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