* Samsung's Q3 profit likely up 58%, beats estimates
* Co helped by U.S. restrictions on China's Huawei -
* To post biggest mobile profit in 4 years - analysts
* Q4 profit seen unlikely to beat Q3 - analysts
SEOUL, Oct 8 (Reuters) - Samsung Electronics Co Ltd
said its third-quarter profit likely jumped 58% to
the highest in two years, beating analysts' estimates as U.S.
restrictions on China's Huawei boosted the South Korean tech
giant's phone and chip sales.
U.S. action against Huawei Technologies Co Ltd has
dampened demand for its phones outside of China, giving Samsung
a leg up, analysts said.
The Chinese firm has also hurried to order more chips from
Samsung after Washington moved to choke its access to
commercially available chips from mid-September.
Samsung said on Thursday that operating profit was likely
12.3 trillion won ($10.6 billion) for the three months ended
September, well above a Refinitiv SmartEstimate of 10.5 trillion
won. It would be the strongest result since 17.57 trillion won
in the third quarter of 2018.
Revenue likely rose 6% from the same period a year earlier
to 66 trillion won, the company said.
Samsung released only limited data in Thursday's regulatory
filing ahead of the release of detailed earnings figures later
"It seems Huawei's impact on Samsung's chip business was
bigger than the market expected, and there was a big surprise in
the smartphone and home appliance businesses," said CW Chung,
head of research at Nomura in Korea.
MOBILE PROFIT BOOST
Samsung was expected to post its biggest smartphone profit
in at least four years, analysts said, as it gained market share
from Chinese rivals and the coronavirus pandemic helped cut
Washington says Huawei is a vehicle for Chinese state
espionage and has tightened restrictions on the firm, hurting
demand for Huawei phones in Europe and other countries and
boosting Samsung's sales at a time when markets outside China
are recovering from COVID-19 lockdowns, analysts said.
"Many consumers were reluctant to buy Huawei phones because
they thought that Huawei may discontinue phone sales and
services because of U.S. restrictions," Tom Kang, an analyst at
Counterpoint said, adding that Samsung has boosted sales of mid-
and low-end phones.
A surge in anti-China sentiment in India following a border
clash in June is also seen as providing a boost to Samsung,
which competes with Xiaomi and other Chinese rivals
Samsung's home appliance business also got a lift from the
pandemic lockdowns, which spurred consumers to spend more on
appliances such as air purifiers.
Consumer electronics rival LG Electronics also
said on Thursday it likely made its largest third-quarter
operating profit ever of 959 billion won, which analysts
attributed to strong home appliance and TV sales.
CHIP PRICES BOTTOMING OUT
Samsung's shares have gained about 7% so far this year.
They ended down 0.3% on Thursday in a slightly firmer
overall market, with analysts pointing to memory chip
prices and the uncertain Q4 outlook for the muted response.
Analysts doubted whether Samsung's fourth-quarter profit
could beat the third, as memory chip prices are seen bottoming
out and a new Apple iPhone model is expected on the
U.S. rival Micron Technology Inc, which posted a
market-beating quarterly profit last month, forecast
lower-than-expected sales in the following quarter, as it had
not yet obtained new licenses needed to sell its memory chips to
Market researcher Trendforce expected DRAM chip prices to
decline by about 10% in the year-end quarter, as demand from the
server industry has yet to make a noticeable recovery.
This comes even as Huawei rivals like Xiaomi, OPPO, and Vivo
are all urgently stocking up on key components, in turn
providing some support for the mobile DRAM chip market,
($1 = 1,157.3700 won)
(Reporting by Joyce Lee; Editing by Christopher Cushing,
Richard Pullin and Kim Coghill)