Samsung Electronics is reported to have seen a 38 percent rise in its profits for the April-June period, courtesy of strong chip prices and consumer demand despite the COVID-19 pandemic.

According to a Refinitiv SmartEstimate positioned by 20 prominent analysts, the operating profit for Samsung most likely jumped to $10 billion in the second quarter of 2021, overseeing one of the biggest demands for chips which have caused inventories of companies other than Samsung to clear out.

Samsung’s chip division most likely benefited from the underlined inflated price hike, something that exceeded expectations of the global tech market, while chip shipments grew as well.

Profit also improved at Samsung’s chip-contract production and logic chip design business, partly because operations at its Texas factory resumed production. The chip division’s approximate operating profit in April-June rose about 22% compared to Q2 2020 to about $5.6 billion.

However, Samsung’s global smartphone shipments dropped below 60 million between April and June, down 21 percent from the first quarter’s 76 million as Galaxy S21’s sales dropped big-time after the flagship was launched in mid-January.

Reduced demand from India is a big factor for this hit, as the country went through the deadliest pandemic episode during the quarter in question.

Overall, Samsung is doing well, and projections for Q3 and Q4 are expected to cross the Q2 threshold as the pandemic situation eases across major markets including India, Bangladesh, and Brazil.