Despite the global economic downturn, Samsung Electronics’ MX (mobile experience) division is expected to perform relatively well in 3Q.
The effect of the launch of new foldable smartphones such as the ‘Galaxy Z Flip 4’ and ‘Galaxy Z Fold 4’ will not be as great as initially expected, but considering the global demand contraction, earnings are expected to rise slightly from the previous quarter.
Samsung Electronics announced on the 7th that it recorded 76 trillion won in sales and 10.8 trillion won in operating profit as a result of aggregating its interim results on a consolidated basis for the third quarter of this year.
Compared to the third quarter of last year, sales increased by 2.73%, but operating profit decreased by 31.73%.
Samsung Electronics did not separately announce interim results for each business division such as DS (semiconductor) and MX.
However, analysts estimated that the MX division did relatively well with sales of foldable smartphones and new wearables.
Park Yu-ak, an analyst at Kiwoom Securities, predicted in a recently released report that Samsung Electronics’ total sales and operating profit in the third quarter will decline from the previous quarter, but “The MX division’s earnings will increase compared to the previous quarter due to the effect of the peak season.”
Shinhan Investment & Securities’ Research Fellow Choi Do-yeon and Nam Gung-hyeon estimated the MX division’s 3Q sales to be about 30 trillion won and operating profit to be about 3 trillion won.
Among them, operating profit is expected to increase by 13.6% QoQ, which is in contrast to the forecast that the operating profit of the semiconductor division will decrease by 39.8% during the same period.
However, the two researchers were concerned about the MX division’s save, saying, “The speed of macro decline is a burden,” and “the rate of decline in demand for sets such as smartphones, PCs, and TVs is fast.”
Song Myung-seop, an analyst at Hi Investment & Securities, also said, “In the MX/network sector in the third quarter, when smartphone shipments and new product launches were expected, the operating profit recorded 2.9 trillion won, which was less than expected due to sluggish smartphone sales and increased costs. It is expected to be.”
This result is a provisional estimate, and Samsung Electronics is expected to report its third quarter results at the end of this month.
Since July 2009, Samsung Electronics has been providing quarterly earnings forecasts for the first time among domestic companies.
/yunhap news