Samsung predicts high record profit for second quarter of the fiscal year 2017
The South Korean tech giant Samsung’s operating profits are set to overtake its arch-rival Apple in operating profits for the first time in the smartphone era.
According to Samsung Electronics estimation, operating profits in the second quarter of the year had hit a record 14 trillion won (£9.4bn), showed a rise of 72% of last year.
Despite the botched Galaxy Note 7 phone, and its chief serving a jail term for embezzlement, Samsung bounced back, thanks to rising memory chip prices and increased demand for smartphones.
Revenue for the company was expected to have risen 18 percent from a year earlier to 60 trillion won. Analysts had expected revenue of 59 trillion won. Samsung will disclose detailed results at the end of July. The company’s stock is up more than 30 percent this year and hovering near all-time highs.
“Samsung is believed to have topped the list of global IT companies, surpassing Intel and Apple, in terms of operating profits for the first time in history,” said Kim Dong-Won of KB Securities.
Samsung has benefitted from increased shipments and strong prices for DRAM and NAND semiconductor chips, as it put behind it last year’s Galaxy Note 7 recall fiasco.
Samsung is preparing to unveil its Galaxy Note 8 handset in August. The launch will be closely watched after its predecessor was pulled from the market last year due to fire-prone batteries. The company is counting on the Note 8 to repair its reputation and regain ground lost to rivals following the controversy over the Note 7.
According to Bloomberg, Samsung Group Chairman Lee Kun-hee’s ranking among the world’s super rich rose to 45th place last week. Lee has been hospitalized since May 2014 after suffered a heart attack, is valued to be worth $18.5 billion. The total represents an increase of $4.4 billion this year alone.