Higher Prices Make Samsung Have Better Profit In Three Years

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Samsung: South Korean manufacturer Samsung had the best quarterly performance in terms of profit since the year 2018. The numbers were revealed by the company itself as part of the financial report for the third quarter of 2021, which ended in September.

According to the data, the brand increased profit by 28% compared to the same period in 2020, reaching 15.8 trillion won (about R$ 73 billion in direct currency conversion).

The market’s estimate was that performance would be even higher, but some industry hurdles appear to have affected performance.

Positive and negative points

Despite not having detailed the numbers for each division, Samsung confirmed that the semiconductor division was severely affected by the current shortage of chips in the global market, which meant that the revenue generated was lower than expected. In addition, she is still feeling the effects of the temporary closure of some factories during an increase in covid-19 cases in certain parts of the world.

However, the crisis had a positive side: the manufacturer is the world’s largest not only in smartphones today, but also in memory chips. This means that the increase in demand has extended contracts, even receiving outsourcing orders from rivals, causing the value of the requested components to rise. The South Korean factories are operating at a high pace, but new investments must be made in the facilities.

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