Higher Prices Make Samsung Have Better Profit In Three Years

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

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

The market estimated that performance would be even higher, but some industry hurdles appear to have impacted performance.

Positive and Negative Points

Although we have not specified the figures for each division, Samsung confirmed that the semiconductor division was hit hard by the current shortage of chips in the global market, resulting in lower than expected sales generated. In addition, she is still feeling the effects of the temporary closure of some factories amid an increase in Covid-19 cases in certain parts of the world.

However, the crisis also had a positive side: the manufacturer is the largest in the world, not only in terms of smartphones today, but also in terms of memory chips. This means that the increased demand has extended contracts and even received outsourcing orders from rivals, increasing the value of the components in demand. The South Korean factories are running at a fast pace, but new investments are needed in the facilities.

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