Samsung breaks quarterly profit record, again

Samsung breaks quarterly profit record, again

Yolanda Curtis
April 6, 2018

The new Samsung Galaxy S9 Plus mobile is shown during the Mobile World Congress in Barcelona, Spain February 27, 2018. The estimate was higher than expected.

"Even if profits start falling in the second half, Samsung will have a strong balance sheet this year", said Song Myung-sup, an analyst at HI Investment & Securities, predicting looser supply of DRAM chips to start driving down prices.

Although the sales figures are down from the 65.98 trillion won that the South Korean company (~$62 billion) reported in the previous quarter, they're still way more than the 50.55 trillion won (~$47.5 billion) that it made in the same quarter past year.

The operating profit was estimated at 15.6 trillion won (US$14.6 billion) for the January-March period, compared with 9.89 trillion won posted a year earlier, the South Korean tech giant said through its earnings guidance report. The company did not disclose its estimated net income.

Either way, Samsung is still winning because not only is it selling more memory chips and smartphones, but its display technologies feature on both the S9 as well as the Apple iPhone X and countless other flagship smartphones from rival manufacturers. Analysts increased their forecasts of Samsung's memory chip profit this year as demand for data centers and servers increased the prices of the memory chips called DRAM.

But the firm rolled out its latest flagship mobile phone, the Galaxy S9, in the first quarter to favourable reviews.

While the chip business underpinned Samsung's profit growth, the mobile business - which accounted for 40 per cent of 2017 revenue - appeared to have made a surprisingly solid contribution to first-quarter earnings, analysts said. The record earnings have not been driven by smartphone sales as one would ordinarily assume but were mostly due to a high demand for memory chips. She declined to comment further.

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