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Samsung profits spike thanks to chip crisis

Samsung has announced its highest profits in three years thanks to ongoing high demand for chips.

The South Korean tech giant made 73.98 trillion won (about £46 billion or $63 billion) in the third quarter of 2021, which marks a record for the company. Its profits spiked 26 percent compared to the same time last year.

It doesn’t take a genius to figure out why Samsung is reporting that it’s in such rude health right now. The global chip shortage, combined with economies grinding into life again amidst the COVID-19 pandemic, has meant that demand is sky high. As the world’s largest chipmaker, Samsung is reaping the profits.

The company did sound a note of caution about ongoing shortages in 2022, as well as rising raw material costs and weaker home appliance sales.

Of course, Samsung is also in the business of making smartphones, and business is good. The company continues to be the top phone maker in the world, and demand for the new Samsung Galaxy Z Flip 3 and Samsung Galaxy Z Fold 3 has been strong. It’s worth noting that the latter is pretty much the most expensive mainstream phone on the market right now.

Those are the headline acts, but Samsung also turns out lots of entry-level and mid-range smartphones, and demand for those has reportedly been strong too.

The third major string to Samsung’s bow is the fact that it’s by far the dominant producer of OLED display technology. With the recent launch of Apple’s iPhone 13 range – all packing Samsung OLED displays – business has been pretty great on that front too.

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