Samsung Electronics has posted 12.3 trillion won in operating profits and 66 trillion won in sales in the third quarter, the company said on Thursday.
Sales rose 24.6% from the previous quarter and 6.5% year over year. Operating profits was 50.9% higher than the previous quarter and 58.1% year over year.
South Korean analysts expected operating profits of 10 trillion won and sales of 63 trillion won prior to Samsung’s announcement.
It is the first time in seven quarters that Samsung has posted more than 10 trillion won in operating profits.
Sales and operating profits likely rose from strong performances of both set products and components.
Demand for 5G smartphones and TVs were likely higher than expected.
Huawei’s efforts to secure components before US sanctions took effect likely also boosted profits.
South Korean analysts expect device solutions to contribute mid-5 trillion won, mobile late-4 trillion won and consumer electronics around 1 trillion won. Samsung Display also likely contributed some 300 billion won to 400 billion won in operating profits.
However, fourth quarter earnings is expected to drop. Memory prices are going down and increased marketing cost from Samsung Mobile in light of the launch of iPhone 12 will likely result in operating profits lower than 10 trillion won.