In its third quarter earnings announcement, South Korean tech giant Samsung Electronics posted an all-time high quarterly sales figure.
The company announced on Thursday that it logged third quarter sales of around ( 1) 59 billion U.S. dollars, up eight percent on-year.
This helped it haul in 10.nine billion dollars in operating profit for July to September this year.
( 2) That's an almost 59 percent jump from the same period a year earlier.
This is the largest quarterly operating profit in two years.
Analysts say Samsung Electronics' strong earnings were largely due to solid global sales of TVs, home appliances and its latest smartphone series as consumers spent what they had held back in previous quarters.
"The amount of smartphone and TV shipments were solid despite the COVID-19 pandemic and the improvement in its semiconductor exports contributed to the record high sales."
The expert also attributed the strong performance to savings on marketing costs because efficiencies in online marketing increased and Samsung did not have to do as much as promotion at offline stores amid the outbreak.
He also said, Samsung Electronics has benefited from U.S. sanctions on the Chinese tech giant Huawei because Huawei urgently placed orders with Samsung for semiconductors and displays before the sanctions took effect.
It also benefited in terms of smartphones as the sanctions helped to increase Samsung's share in competitive markets. However, earnings in the fourth quarter are expected to drop.
"Marketing expenses are forecast to increase in the fourth quarter and flagship shipments of smartphones are also expected to drop compared to the third quarter."
He added that semiconductor prices are expected to fall in the fourth quarter which could contribute to a drop in earnings in the next quarter.
Eum Ji-young, Arirang News.