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Samsung predicts profit jump for second quarter as pandemic boosts chip demand from data centres

The tech giant is estimating an operating profit for the period equivalent to around £5.4bn, up from £4.4bn in the prior year

Apple Inc. - Samsung predicts profit jump for second quarter as pandemic boosts chip demand from data centres

Samsung is forecasting a 23% increase in operating profit for its second quarter as the South Korean tech giant said memory chip sales to data centres had been boosted by the increase in people working from home during the coronavirus pandemic.

The company is estimating an operating profit for the period of around 8.1 trillion South Korean won  (£5.4bn), up from 6.6 trillion won (£4.4bn) in the prior year, alongside sales of around 52 trillion won (£34.8bn), down from 56 trillion won (£37.5bn) in 2019.

Samsung said the stronger demand for its memory chips had offset weaker demand for its smartphones and TVs, while the company had also received a boost from its display business, which makes products such as PC monitors and wall screens for clients including Apple Inc (NASDAQ:AAPL).

The better than expected profits will provide a welcome boost amid a difficult time for the firm due to the pandemic but also the ongoing legal troubles of its de facto chief Jay Y Lee, who is currently facing fresh allegations of accounting fraud and manipulation that could see him face jail time.

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