Samsung’s final quarter of enterprise noticed its slowest progress of earnings in a yr due to weak gross sales of its flagship Galaxy S9 smartphone. But the corporate is about far more than simply telephones, and that’s why it’s forecasting a report working revenue of almost $15.5 billion for its upcoming Q3 outcomes.
The Korean agency stated in a submitting that it expects to income leap 5 p.c year-on-year to hit 65 trillion KRW ($57.5 billion) with an working revenue of 17.5 trillion KRW ($15.5 billion), which represents a 20 p.c annual leap and an 18 p.c enhance on the earlier quarter.
Samsung’s pre-earnings filings are temporary and don’t comprise detailed details about the efficiency of its enterprise models, thus we will’t assess demand for its high-end telephones — which embrace the Note 9 — within the quarter that Apple unveiled its latest iPhones. But the clues counsel that it’s truly the extra boring (however dependable) divisions which might be, as soon as once more, accountable for Samsung’s robust forecast.
Chips account for some 80 p.c of Samsung’s income and demand for DRAM, which is vital in areas comparable to cloud, pushed costs up throughout Q3 however analysts suspect that the expansion received’t final.
“Its earnings appeared to have peaked,” Mirae Asset Daewoo Securities analyst William Park instructed Reuters. “DRAM prices are going to fall, although not dramatically, and that will negatively impact its margins.”
We’ll know extra when Samsung releases its full earnings this month.