Samsung quarterly operating profit renews all-time high

Lena Tucker
July 27, 2017

South Korean tech giant Samsung Electronics posted record-breaking earnings Thursday, putting it on course to better rival Apple's quarterly profits as it seeks to move past a bribery scandal and a damaging recall debacle. It said it also expects to see increased orders of memory chips for smartphones with a number of handset manufacturers set to launch new models in the second half of the year.

Mobile devices and data are the keys to understanding Samsung's ascent as the new industry leader, even as its de facto chief is jailed, battling corruption charges, and it recovers from a fiasco over Galaxy Note 7 smartphones that had to be axed past year because they were prone to catch fire. Samsung provides its chips to other companies including Apple.

Intel, the dominant supplier of the processors that serve as brains for personal computers, has been the world's largest semiconductor company by revenue since 1992 when it overtook Japan's NEC. All of Samsung's products performed exceptionally well with its smartphone and memory divisions leading the charge.

Samsung Electronics said it expected the memory chip boom to continue in the current quarter.

. At times, competition was brutal as supply gluts arose. That's about 60% of the total profits made by what analysts are already calling a "memory super cycle", but there was a decent contribution from something that is near and dear to our hearts as well - the mobile department. Apple is forecast to report $8.2 billion in net profits next Tuesday, according to data by FactSet.

LG's appliance division reported operating profit of 466 billion won, steadied by brisk sales for high-end products such as washing machines and refrigerators, as well as lower costs of materials used commonly among its products, analysts said.

Looking ahead, Samsung and SK Hynix, which control more than three quarters of the global DRAM sales, are raising their spending on semiconductor capacity and development in anticipation of robust future demand. Analysts were expecting a profit of about 9.75 trillion won, according to a projection by Bloomberg.

This month the firm said it will invest 20.4 trillion won by 2021 to expand and upgrade its chip plants in the South Korean cities of Pyeongtaek and Hwaseong.

Other reports by AllAboutTopnews

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