Samsung Q3 profit surges on rising chip prices

Samsung said Friday its third-quarter profits were likely its best in three years, a boost of 28 percent compared to the year before.

But analysts say that may not last.

The smartphone giant claimed an operating profit of more than $13 billion dollars in Q3.

However, that was actually a little below forecasts, and some analysts saw a flat or slightly lower result this quarter as the price of memory chips is expected to fall.

Lockdowns across the globe saw a surge in demand for chips, but as those are rolled back, analysts expect sales of PCs and maybe even smartphones to drop.

Besides memory, another profit driver was Samsung's display unit.

Analysts point to a boom in orders from its key customer Apple for the launch of its iPhone 13 series.

Samsung will be releasing more detailed results of its third-quarter earnings later this month.

In the meantime, it hopes to win more clients for its chip-making business, which, this year, has made up half of its operating profit.

It said on Thursday it will begin creating cutting edge, 3-nanometre chips next year to compete against industry leader TSMC.

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