Apple is making Samsung rich
- Author: Eleanor Harrison Jul 09, 2017,
Jul 09, 2017, 0:23
Its semiconductor division - which is enjoying an all-time-high demand for memory chips - likely contributed the lion's share, coupled with a recovered mobile division thanks to strong sales of the Galaxy S8 series.
The memory chips industry is widely Tech giant Samsung Electronics Co Ltd 005930.KS on Friday estimated a record quarterly operating profit for April-June, propelled by a memory chip boom that analysts say will continue to pad margins for the rest of 2017.
The firm's operating profit is expected to jump by 67 percent from the same period past year to a new high of $11.4 billion. As Apple moves to production and release of their next round of smartphones, notably the iPhone 8, Samsung is poised to reap a windfall as the supplier for the OLED displays that Apple is reportedly planning to switch to for the next generation device.
Results for Samsung's individual businesses were not given in the guidance.
Samsung expects its operating profit to increase 72% to $12.1 billion and revenue to rise 18% to around $52 billion.
Earlier this week, Samsung said it planned to invest $18B in its chip business to extend its lead in the smartphone market.
"The chip business is leading the overall performance, the display and smartphone sectors are also performing well", Kwon said.
Despite the upbeat results, shares of Samsung Electronics edged down 0.42 percent to end at 2,393,000 won on Friday as foreigners net sold 74 billion won worth of shares.
Seasonally weaker sales of home appliances in the second half of the year could hurt LG's earnings, but year-on-year growth is expected in the third quarter, analysts said.
The bitter scarce caused due to the failure of Samsung Galaxy S7 are healed with the sales of Samsung Galaxy S8 smartphones this year.
After the Samsung Galaxy Note 7 fiasco a year ago, Samsung has been extra careful in launching a phone globally. The revenues for the second quarter are not yet announced but are expected to be the best till date.