After almost two years of disappointing sales and slowing profit, Samsung Electronics finally has some good financial news. The Korean tech giant said today that it expects its third-quarter operating profit to be much higher than the same period a year earlier.
According to Samsung Electronics’ guidance, it expects third-quarter operating profit of 7.3 trillion won (about $6.3 billion), a steep 79.8 percent increase from a year earlier. This would mark the first time Samsung Electronics has seen year-over-year growth since the third-quarter of 2013. Revenue is forecasted to be 51 trillion won (about $43.9 billion).
While its smartphone business is still weathering competition from other Android device makers, Samsung Electronic’s semiconductors performed well, while sales of displays to Chinese smartphone manufacturers (including companies whose final products compete with Samsung devices) also took off.
Earlier this year, Samsung deployed new technology that allows it to manufacture chips at a much faster rate. This enabled it to starting using its own chips in all Samsung smartphones, instead of ordering from suppliers like Qualcomm, and in turn helped boost its semiconductor business.
Samsung shares got a boost after its new guidance, but there’s still a long way to go until its recovers from the five-month losing streak. As TechCrunch’s John Biggs recently pointed out, the upgrade cycle is lengthening as smartphones become less differentiated, which hurts Samsung and its rivals. Furthermore, when people do finally buy a new phone, they might very well turn to smaller manufacturers with cult followings, like OnePlus.Featured Image: Shutterstock