Samsung Electronics Co Ltd. (SSNLF) forecast a smaller-than-expected decline in third quarter profits Tuesday, as solid sales for its flagship Galaxy Note 10 smartphone and a nascent turnaround in semiconductor demand looks to have stabilized earnings at the world's biggest chipmaker.
Samsung said it expects third quarter profits of around 7.7 trillion Korean won ($6.4 billion), a 56% decline from the same period last year but a figure that comes in modestly ahead of the Refinitiv forecast of 7.1 trillion. Group sales, Samsung said in its traditional pre-release, likely fell 5.3% to 62 trillion won. The company will post detailed third quarter earnings later this month.
Samsung's second-quarter semiconductor sales fell 34% in the second quarter, but the world's largest maker of DRAM and NAND flash memory chips had forecast full-year DRAM and NAND industry bit demand will grow by a mid-teens percentage and a low-30s percentage, respectively, as demand improves during the back half of the year.
Samsung shares closed 2.41% higher in Seoul Tuesday, ending the session at 48,900 Korean won each, a move that extended the stock's year-to-date gain past 26.3%.
Samsung has indicated that its Galaxy Note 10 smartphone, which launched in late August, has sold more than 1 million units in the company's home market in South Korea and is off to a solid start in Europe as rival handsets from Huawei Technologies, which was blacklisted by the U.S. earlier this year and offers no access to Google's android platform, struggle to gain traction.
The Note 10, which has a 6.3 inch screen, will start at $949 while the 10+, which features a 6.8-inch screen, will start at $1099 for an LTE version and $1,299 for the 5G version.
Samsung's innovative high-end smartphone, the Galaxy Fold, features multiple screens that can be combined into a single tablet screen when folded open and will cost €2,000 in Europe. The device was originally slated to be released in April, but was delayed when multiple press reviewers for the device experienced problems with the screens breaking and cracking.