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Samsung Shares on the Rise After Profits Posted

April 6th, 2010 | 3 Comments | Posted in Stocks and Shares

Investors are celebrating after the Samsung Electronics Co Ltd of Japan has just let the public know that it is on the way to topping the best expected forecasts previously set by industry analysts. A powerful surging recovery in its chip business, the company’s primary focus, has lead to the quarterly profits and put Samsung back in motion. The reason for the chip industry’s rising profits comes from the personal computer segment of the digital electronics market and has steadily stoked the market’s fires, creating intense demand that has played into Samsung’s favor, but also those of smaller producers who have been able to raise their own prices to a level Samsung can compete with. Shares are already pushing to an all time high and record breaking annual profits are predicted for chip makers across the industry as the global demand for in home computers continues to grow thanks to the rapid expansion of the web and its related services.

The tech sector does, however, have some strong rivals for Samsung in the flat screen TV production sector. Samsung stands as a major manufacturer of such electronics and the investments its rivals are pouring into producing cheaper TV’s could well cut into the company’s other mainstay profitable business. Differences in the price of currencies such as the yen and dollar could further create issues for this part of the tech sector, but rising demand for electronic goods in a recovering Japan means the market may still find a way to level out before the third quarter of 2010.