Samsung Electronics says its operating profits for the third quarter will hit $6.29 billion, up 80% year-over-year and smashing Wall Street expectations.
That forecast from the South Korean tech conglomerate exceeded analysts’ expectations of about $5.89 billion. It marks a surprise for a company that as recently as the previous quarter saw operating profits fall 4% from the same period last year.
What’s driving the comeback? It’s all about Samsung’s semiconductors division, the backbone of its third quarter success. And that’s partially thanks to smartphone rival Apple, which uses chips manufactured by Samsung in its latest iPhone 6 lineup (Samsung’s own phones also use Samsung-made chips). Samsung’s chip business saw revenues grow by around 24% to about $28 billion last year.Aren't Samsung and South Korea generally great examples of crony capitalism? (Here's The Economist in 2010 briefly on the topic.) Doesn't their success send some sort of challenge to small government advocates that their approach isn't the only one that can succeed?