Samsung Elec on track for record Q3 as chips soar

Samsung Electronics Predicts Record High Operating Profit for Q3

Samsung expects record profit in third quarter

In its earnings preview, Samsung put its July-September operating profit at 14.5 trillion won ($12.8 billion), compared with 5.2 trillion won ($4.6 billion) a year earlier.

Samsung Electronics' Galaxy Note 8 are seen on display at its store in Seoul, South Korea, October 11, 2017.

The record profits are likely backed by a recovered mobile division - the well-received Galaxy Note 8 began sales last month - and the continuing high-demand for its memory chips.

It is also a 3 percent rise from this year's second quarter - its previous highest - of 14.07 trillion won in profits.

The operating profit was broadly in line with market consensus.

Strong global demand for DRAM chips will continue to outpace supply in 2018 as new plants from Samsung and No. 2 memory chip maker SK Hynix are not expected to operate until 2019, while demand for NAND flash chips exceeded supply for six straight quarters as of last month, DRAMeXchange, a division of data provider TrendForce, said.

"The release of new models, including the iPhone X by rival Apple Inc., could weigh down on the mobile business, but it will at the same time help Samsung's parts business", said Doh Hyun-woo, analyst at Mirae Asset Daewoo Securities Co.in a report. Analysts have tipped its chip division to propel the firm to record overall profit.

Industry watchers, meanwhile, said the absence of Samsung's top leaders cast a cloud over the company's long-term strategy.

His ailing father Lee Kun-hee has been hospitalized since 2014, and is now unable to participate in the company's management.

Shares in Samsung Electronics were trading down 0.77 percent on heavy profit taking in mid-morning trade.

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