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Chronicles

The story behind the story

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Samsung says it expects to make an operating profit of $10.6B in the July-September quarter, up 58% YoY, and sales of $7B, up 6% in its earnings guidance

Hong Kong (CNN Business)Samsung (SSNLF) predicts its profit jumped nearly 60% last quarter, suggesting it could soon retake its position …

CNN Sherisse Pham

Context & Ripple Effects

Samsung's guidance history frames this number: the record 2017 third quarter showed what peak memory-cycle profits look like, while the $5.2B Q1 2020 forecast marked the pandemic trough earlier this year. A $10.6B July-September projection sits between those poles — a steep recovery, though still short of the 2017 high-water mark.

The description's suggestion that Samsung 'could soon retake its position' is the story's stakes: this is a rebound quarter, not a record one, and the gap to 2017 is where analysts will look next.

First-order effects

  • Investors get confirmation the pandemic hit was temporary — operating profit guided up 58% year-over-year versus the roughly flat Q1 print, resetting expectations for the full year.

Second-order effects

  • With Samsung holding 25% of Q2 NAND flash shipments, a profit rebound of this size signals firmer component pricing for the device makers that buy its memory and displays.

Third-order effects

The trend: Samsung's quarterly guidance has become the market's real-time gauge of the global memory-chip cycle, with handset results riding along.

Discussion

  • @cnni @cnni on x
    Samsung predicts its profit jumped nearly 60% last quarter, suggesting it could soon retake its position as the world's top smartphone seller from embattled Chinese rival Huawei https://www.cnn.com/...