Samsung Electronics reported record preliminary results for the third quarter, with operating profit increasing 8.8 times year-over-year to $80.2 billion. Revenue rose by 126.6 percent to $145.7 billion. For the first time, quarterly operating profit exceeded 100 trillion won, marking a record for the technology sector.
Quarter-over-quarter, operating profit grew by 20 percent, while revenue increased by 13.7 percent. This marks the fourth consecutive quarter of record operating profit for the company. The memory chip division is considered the primary driver of these results. While Samsung remains the largest supplier of memory chips by volume, it continues to trail SK hynix in the HBM segment.
According to Douglas Research Advisory, Samsung's HBM shipment volumes grew by nearly 50 percent sequentially in the last quarter. Meanwhile, TrendForce analysts forecast that DRAM contract prices will rise by 10 to 15 percent in the fourth quarter. Samsung shares fell by 0.7 percent following the report, as investors expressed concerns regarding future financial dynamics.
Rising memory prices are impacting Samsung's own electronics manufacturing business, affecting the profitability of that division. However, Counterpoint Research notes that buyers are stocking up on memory due to fears of shortages and further price hikes. If annual operating profit hits $276 billion, production staff may receive bonuses of up to $560 000 each.
