Samsung Electronics Q3 operating profit jumps 20.4% to record W17.5tr

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The bumper profit haul was likely driven by strong sales in memory chips and higher earnings in Samsung's display and consumer electronics business, according to SK Kim, an analyst with investment bank Daiwa Capital Markets.

The company said its operating profit will come in at around 17.5 trillion won ($15.8 billion), a 20 percent increase from the year-ago period.

Brokerage firms estimated that Samsung Electronics made roughly 25 trillion won in revenue in semiconductors in the third quarter, up 24 percent from last year's 19.9 trillion won.

"Operating profit seems to be at its peak now", Hyundai Motor Securities Co Ltd analyst Greg Roh told Bloomberg News.

The smartphone business, however, is expected to have posted yet another quarterly shortfall for the July-September period.

Samsung doesn't release the performance figures of its individual divisions until later this month-it will certainly be interesting to find out how the Galaxy Note 9 has been performing. It was up 11.2 percent from the prior quarter.

Samsung shares rose as much as 1.8% in early trade in Seoul.

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"DRAM products have begun to see a weak price trend since the third quarter of 2018 after the price growth of nine consecutive quarters", said Avril Wu, a senior research director at DRAMeXchange, a unit of TrendForce.

The firm will disclose detailed earnings later this month.

Chips represent close to 80% of the operating profit for Samsung and the company has been the benefactor of a surge by data centers for cloud computing that spurred on spikes in DRAM chip prices.

Samsung's reputation was dealt a blow by the bribery conviction of Lee Jae-yong - the son and heir of the group's current chairman Lee Kun-hee.

But its growth has been overshadowed by corporate scandal at the South Korean behemoth.

But the court of appeal back in February his sanction to the suspended prison sentence and ordered his immediate release, after almost a year behind bars.

South Korean flagships Samsung Electronics and LG Electronics announced surging Q3 year-on-year profits today.

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