Samsung US takes advantage Huawei restrictions and increases its profits by 58%, recording its best results in two years: The Trump administration's restrictions on Chinese firm Huawei have a potential beneficiary. This is Samsung, which recorded an increase in its profits during the third quarter of 58%, thus achieving its best result in two years, according to Reuters.

The actions taken by the United States against Huawei has increased the demand for mobile brands outside China, which has been a revulsion for the Korean Samsung. Since many of these restrictions have barred Huawei from acquiring U.S. components, the Asian company and many of its subsidiaries have turned to Samsung in search of semiconductors, which has also been a benefit to the Korean company.

According to its latest income statement, Samsung's operating profit during the third quarter of its fiscal year would have reached 9,000 million euros -10,600 million dollars, 12,300 billion won—. It is its best data since the third quarter of 2018, in which it recorded an operating profit of 17.5 trillion won.

Revenues have increased by 6 per cent over the same period of the previous year. However, many details remain to be worked out, as these data arise from Samsung's usual quarterly earnings growth.

"It seems that Huawei's impact on Samsung's chip business is greater than the market expected, and there will be big surprises in the smartphone and appliance segment," CW Chung, Nomura's head of analysis for the Korean market, acknowledges in a statement to Reuters.

Samsung US takes advantage Huawei restrictions

The cell phone thing has an easy explanation. Many users around the world are reluctant to purchase new Huawei terminals, fearing that the Chinese multinational will discontinue them in the face of US pressures. That is what, at least, Tom Kang, analyst for Counterpoint, thinks. The Trump administration has accused Huawei for years of being a Trojan horse for Chinese espionage.

This, coupled with a growing anti-Chinese sentiment in India —several Chinese apps, including TikTok, were banned in this country months ago - have caused one of the world's largest markets to look more at firms like Samsung rather than companies like Huawei or Xiaomi.

As for household appliances, coronavirus confinement has invited many users to purchase new household appliances, such as air purifiers, which has helped maintain this market for Samsung.

Now the main challenge for Samsung is to beat its third quarter results in the last quarter of the year. It will be complicated, because as they point out from Reuters, semiconductor prices are falling and Apple will present its new iPhone next week.

Samsung US takes advantage Huawei restrictions


More news:

The keys to the experimental therapy that Donald Trump has received to treat coronavirus

The hospital admission of Donald Trump due to the coronavirus has been so publicized that it has been inevitable that the treatment received by the president of the United States has jumped to the headlines.

Trump has received an experimental drug from Regeneron consisting of a cocktail of two monoclonal antibodies designed to block infection with SARS-Cov - 2 and called REGN-COV2.

Biotech Regeneron announced that its goal was to have doses of a potential drug to combat COVID - 19 ready to begin human clinical trials in early summer.

The company met the dates and the drug has already gone through phases 1, 2 and 3 of the trial and has been tested in 275 patients. Preliminary data suggest that drug reduced viral load and helped defend patients who did not have a good immune response by itself.

Regeneron has based its treatment on the creation of antibodies against the virus that could be used to treat the disease and prevent it, the company explained in a statement, a strategy they have already successfully implemented to create a drug against Ebola.

The company has not yet received authorization to market and distribute REGN-COV2, but its administration is allowed under the assumption of Compassionate Use.

The scientific community is betting on therapeutic antibodies as particularly promising candidates for treatment against COVID - 19 and the pharmacist Eli Lilly is also leading the race with another very advanced project.

In addition to the antibody cocktail, the president of the United States also received remdesivir as a treatment, a drug originally developed to combat malaria by Gilead and which is currently the only officially authorized to be distributed as a coronavirus drug.

You may also find interesting: