SEOUL Scarred with the aid of the global don't forget of its
flagship telephone, Samsung Electronics Co is set to report on Friday it
nonetheless expects a small upward push in third-region income, analysts say,
with healthy sales of memory chips and presentations easing the pain.
misplaced income and fees tied to the keep in mind of at least
2.five million Galaxy note 7 handsets to fix battery troubles ought to fee the
company almost $five billion this yr, a few analysts have said. that would sap
momentum from a nascent healing in Samsung's cellular business, an
underperformer in current years.
however a pickup inside the memory chip marketplace, led by
using demand from rival smartphone maker Apple Inc, will buttress profits,
agency watchers say. A Thomson Reuters SmartEstimate, derived from a survey of
20 analysts, recommendations typical July-September operating earnings to have
edged up 0.7 percentage from a year in advance to 7.four trillion gained
($6.sixty five billion).
Samsung will record its estimates for 1/3-quarter revenue
and working profit, with out further info, on Friday.
"as long as the working profit range comes in at a low
7 trillion gained stage, the market will have a look at it and suppose a number
of noise surrounding the note 7 do not forget problem has cleared," said
HDC Asset control fund supervisor Park Jung-hoon.
Analysts have reduced their expectancies for Samsung's
cellular division since the Sept. 2 take into account made international
headlines. some have cut their mobile department profit forecast by 1 trillion
gained or more to reflect the misplaced income and prices of recalling a
telephone that had gained rave opinions and made a sturdy sales begin when you
consider that its release in Aug. 19.
Korea
funding analyst Jay Yoo forecast Samsung's 1/3-zone cell department operating
profit at 2.6 trillion gained, up from 2.four trillion received a 12 months
earlier but down from 4.three trillion won in April-June.
however analysts say Samsung's chips department - the
company is the arena's biggest reminiscence chip maker - will soothe the note 7
woes as different smartphone makers filled chip order books and drove costs
better ahead of the height yr-cease shopping season. Analysts estimate the
division should document quarterly operating income of three trillion gained or
extra - its highest in 4 quarters.
Analysts said the semiconductors uptrend turned into greater
reported for NAND memory chips - used for long-term data storage - as call for
started to outpace deliver all through the area due to orders from Apple and
chinese language smartphone makers. call for for strong-country pressure garage
chips for mobile devices additionally grew.
Samsung stands to benefit from the upswing - specifically in
the NAND marketplace, wherein it dominates rivals which include Japan's
Toshiba Corp and U.S.
company Micron generation Inc in the marketplace for excessive-end 3-d products
inclusive of enterprise servers and storage.
Samsung's display enterprise income also probable picked up
a number of the slack from the cellular division thanks to growing adoption of
its organic light-emitting diode displays (OLED) with the aid of rising chinese
smartphone makers including OPPO and VIVO, analysts said.
"whilst the Galaxy notice 7 do not forget is a painful
blow, the 1/3 zone will display that additives consisting of DRAM, NAND and
displays did better than expected," Dongbu Securities stated in a
document, tipping operating profit for the chips division to be at 3 trillion
received.
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