South Korean giant Samsung Electronics on Thursday (October 28th) announced a rise of more than 30% in its net profit in the third quarter thanks to strong global demand, and despite difficulties related to the global supply chain. The company said “favorable market conditions have continued in the memory market,” resulting in “strong sales.” Its revenue increased 10% year-on-year to a record 74 trillion won (€ 54.4 billion), thanks to excellent results from its chips linked to very high demand in times of pandemic. .
The rise of work at home has boosted demand for devices running on semiconductors produced by the South Korean juggernaut. The world’s largest smartphone maker saw its net profit hit 12.3 billion won (€ 8.8 million) for the July-September period year-on-year, the group said in a statement. Operating profit rose 28 percent to 15.8 billion won (11.47 billion euros), the value the group expected at the start of the month.
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Samsung Electronics is the flagship of the Samsung group, which is by far the largest of the family conglomerates – the “chaebols” – which dominate the world’s 12th largest economy. The turnover of the group as a whole is equivalent to one fifth of the national GDP. But the pandemic continues to be a source of uncertainty. The group warned “that a longer-than-expected component supply issue may need to be monitored.”
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Supply chain issues are plaguing economic activity around the world, as companies face shortages of critical raw materials, components and transportation capacity. Samsung Electronics is the flagship of the Samsung group, which is by far the largest of the family conglomerates – the “chaebols” – which dominate the world’s 12th largest economy.
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