Samsung Electronics expects earnings that beat analyst expectations as stronger smartphone demand offset price declines in the memory chip business.
Samsung's earnings guidance for the third quarter of 2019 is as follows:
Consolidated Sales: Approximately 62 trillion Korean won
Consolidated Operating Profit: Approximately 7.7 trillion Korean won
Samsung’s new high-end smartphones, including the Galaxy Note 10 and Galaxy Fold, helped cushion profit declines in the memory business. Still, that is a profit decline of more than 50% for the South Korea-based company.
Samsung is benefiting from the demand for its Note 10 and for Apple’s iPhone 11 Pro, which uses the company’s OLED displays. Yet, the memory chip business has been its most profitable, despite the effects of the U.S.-China trade war and Japanese restrictions on the export of materials essential for chip and display production.
Samsung will provide net income or break out divisional performance until it releases final results later this month.