Samsung said it expects sales to grow by about 6% in the third quarter to 66 trillion won (57 57 billion). Analysts surveyed by Refinitive forecast a trillion trillion win (. 5 billion. $ 5 billion) in sales.
Shares at Samsung were last trading 0.2% lower in Soil.
Samsung, which did not provide details on earnings, will report full results for the third quarter later this month.
Earlier this year, the company was displaced by Huawei as the world’s top smartphone seller because of the coronavirus epidemic on the global economy. Most of Huawei’s sales are in China, which has improved faster than other countries.
For Samsung, a sharp rise in smartphone sales will boost earnings in the third quarter, and SK Kim, an analyst at brokerage firm Diva, said in a research note last week that the boom will pick up by next year.
Kim said the sales bump is driven by U.S. sanctions on Huawei, an increase in demand for 5G phones and an “improvement in the cost structure with a faster shift in online marketing.” The epidemic has closed retail stores around the world and reduced marketing costs.
As millions of people around the world continue to work from home, play sports and watch movies, Samsung is expanding its memory chip business due to the demand for data centers. But Kim said he expects Samsung to see weaker earnings from the unit going forward, “reducing the price of memory from inventory adjustment.”
Lee Su-bin, an analyst at Daishin Securities, wrote in a note last month that Samsung is ready to grow display panels to sept conductor shipments and captive customers, fueling increased sales.
“It offers a more significant advantage than any of its peers over the ongoing ban on Huawei,” he added.
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