Samsung's Q3 2020 operating profit jumps 59 pct on stronger consumer demand

The company's Memory Business posted solid earnings on healthy demand for mobile and PC products whereas the Foundry Business witnessed record quarterly revenue on the back of mobile demand recovery and increased demand for HPC chips.

Samsung Electronics reported Thursday that its third-quarter (Q3) operating profit was 59 percent higher year-on-year (YoY) on stronger sales of memory chips and consumer products.

Despite the economic disruptions caused by the COVID-19 pandemic, the South Korean technology giant reported KRW 66.96 trillion in consolidated revenue and KRW 12.35 trillion in operating profit for the third quarter ended September 30, 2020.

"Even as the COVID-19 pandemic continues around the world, the reopening of key economies led to a significant increase in consumer demand. Samsung Electronics was able to respond aggressively through flexible global supply chain management (SCM), reporting its highest-ever quarterly revenue," the firm said in a statement.

Samsung said its quarterly operating profit rose 52 percent from the previous quarter on strong demand for smartphones and consumer electronics. Smartphones including new flagship models such as the Galaxy Note 20 and Galaxy Z Fold 2 witnesses a near 50 percent jump in sales while the Consumer Electronics Division also witnessed a sharp growth in sales of premium QLED, super large screen TVs and Lifestyle TVs as well as appliances.

The company's Memory Business posted solid earnings on healthy demand for mobile and PC products whereas the Foundry Business witnessed record quarterly revenue on the back of mobile demand recovery and increased demand for HPC chips.

"Overall demand in the Memory Business was better than expected as demand for mobile applications began to recover, even as demand for servers was somewhat weaker than the first half," the company said in a statement.

Samsung expects a recovery in overall global demand in 2021 but uncertainties persist over the COVID-19 pandemic.