Samsung flags 80% surge in operating profit

Seoul

SOUTH Korea's Samsung Electronics flagged a nearly 80 per cent jump in quarterly profit on Wednesday, as sales of chips and displays offset stiff competition in smartphones from Apple and cheaper Chinese rivals.

The stellar earnings forecast sent shares soaring 8.7 per cent by the closing bell.

Samsung predicted operating profit of around 7.3 trillion won (S$8.91 billion) for July-September, up from 4.1 trillion a year earlier and 6.9 trillion won the previous quarter.

The firm's flagship smartphone business is struggling against fierce competition, sandwiched between top-end rivals like Apple's iPhone and lower-end devices from fast-growing Chinese o…