Samsung expects profit to rise 52% amid global chip shortage

Amid a global shortage of chips, Samsung expects its profits to soar by as much as 52%. The tech giant makes a range of TVs, mobile phones and home appliances and is the world's largest maker of memory chips and smartphones - with an estimated 13.8 billion won ($11.5 billion; £8.5 billion) in revenue during the period. That would make it the highest fourth-quarter operating profit since 2017, although the result fell short of a Refinitiv SmartEstimate of 15.2 trillion won, which analysts attribute to items such as employee bonuses.

Technology analyst Sam Reynolds told the BBC: "Samsung is well positioned to profit from record demand for PCs and electronics. The Korean won continues to depreciate, making South Korea's exports more attractive in the global market."

This comes after months of uncertainty over a global chip shortage, with manufacturers from car companies to Apple experiencing disruptions.

Park Sung-soon, an analyst at Cape Investment & Securities, told Reuters: "It looks shocking because it came out below consensus, but I don't think it's as bad as it looks. It seems like they reflect various costs. Q4. It is unclear if there has been any change in expected chip shipments.

Back in December 2020, Statista reported that things were "getting better" for Samsung after a "slump" in profits in 2019.

The outlet reported: “Samsung has improved since the second half of 2020 after profit slumped in 2019. The South Korean electronics giant reported a profit of over $13 billion in the third quarter of 2021. This means that profit increased by 19%. more than 100 percent. Percentage compared to the same period last year.”