Samsung has projected that its earnings rose at least 26 percent in Quarter 4 of 2020. This means that there was a sustained demand for its products despite the Covid-19 pandemic and tough competition in the smartphone market.
The Korean company said that it expects to post profits of at least $8.2 billion for the period between October and December 2020. The figure is an increase from the previous year’s earnings in the same period, but off estimated earnings by analysts.
The company had projected earnings of about $56 billion which was in line with the estimates from analysts polled by Refinitiv.
Samsung is set to give its full actual earnings call for the fourth quarter at the end of January.
Samsung’s electronics and panels are likely to maintain their high demand, but the company is facing increasing competition from the smartphone market. In October, Apple launched iPhone 12 with 5G capabilities driving iPhone sales higher.
Huawei surpassed Samsung to become the world’s top smartphone seller in mid 2020. Samsung has since reclaimed its top spot, albeit with increasing competition from iPhone and Chinese manufacturers.
Analysts expect Samsung’s earnings call to remain strong as sales of smartphone and memory chips gain momentum in the market. Samsung’s upcoming event that will see the unveiling of its Galaxy S21 is expected to boost the company’s sales.
“We see [Samsung] launching the Galaxy S series, its key flagship line, earlier than before by end-January 2021, which we believe will drive a sharp rebound in smartphone shipment,” Daiwa analyst SK Kim wrote in a research note earlier this week.
Samsung has since sent out invites for the virtual event which will be held on 14 January at 6 pm local time. Products to be launched include the Samsung Galaxy S21 and Galaxy Buds pro.