Samsung released its Q3 earnings guidance, noting it expects to see an operating profit of $10.6 billion USD (about $14 billion CAD).
If the company’s guidance holds true, it will mean a 58 percent increase from Samsung over this time last year, despite the ongoing pandemic. Although a detailed breakdown of the company’s financials will arrive later this month. However, a Reuters report details how the company may have achieved its highest quarterly profit in two years.
According to Reuters, a good chunk of that profit likely came from mid-range smartphones rather than the company’s high-end offerings, like the new Galaxy Note 20 and Note 20 Ultra. Further, Samsung may have seen a boost in demand for RAM and other components used in the GPUs for new gaming consoles set to come out later this year.
However, another important thing to consider is the impact Huawei may have had. Engadget notes that the China-based company may have placed a large ‘rush order’ of chips as it stockpiled hardware ahead of U.S. restrictions. Further, anti-China sentiment from the U.S. and India likely impacted sales of Huawei devices, many of which may have chosen Samsung phones instead.
Finally, Samsung will likely see a boost in Q4 results later this year as Apple’s upcoming iPhone ramps up since the company often supplies components for Apple’s smartphones.