Samsung is on course to record a three and a half year high in first quarter profits this year, with analysts predicting record earnings for the rest of 2017 as the company gears up to start selling its Galaxy S8 smartphone (via Reuters).

Shares in the tech giant are nearing record highs after gaining nearly 17 percent since the beginning of Q1, coming on top of a 43 percent surge in 2016. The numbers are particularly impressive, given the costly discontinuation of its fire-prone Note7 in October and an ongoing corruption scandal involving the company's chairman Jay Y Lee, who is currently on trial for bribery and other charges. Samsung will issue its earnings guidance early on Friday.

Its resilience is being put down to its dominance in the NAND flash memory market and a boom in memory chips spurred by demand from smartphones and servers. Estimates suggest its January-March operating profit from could hit 9.4 trillion won ($8.44 billion), with its chip division alone making up 5.8 trillion won of that figure, which would stand as the South Korean firm's highest profit since Q3 2013.

Galaxy S8
Analysts expect tight supply conditions for memory chips to continue this year, particularly in NAND flash chips used for long-term data storage. Factor in uncertainty over the fate of Toshiba's flash unit, which accounts for 20 percent of the market and is currently the subject of a bidding war, and that leaves Samsung's mobile division as its key earnings variable.

Analysts are bullish about Samsung's prospects, however. The Galaxy S8 has been praised following its March 29 launch, with sales expected to exceed the S7 and set a new record for the company.

"We think the S8 series will definitely be a strong flagship for Samsung and help it gain back market share," Counterpoint analyst Tom Kang said.

"The launch of the fully revamped iPhone 8 will also be threatening. But there is also pent up demand for Samsung devices rolling over from last year due to the disappearance of the Note 7," he said. "So those 2 factors will balance out."

Samsung share prices have already benefitted from reports that the firm will be Apple's sole provider of OLED displays for the highly anticipated "iPhone 8". Earlier this week, reports indicated Apple has already placed orders for 70 million OLED panels for the phone, which is expected to feature a major design overhaul with an edge-to-edge display, glass body, and a premium price tag.

Top Rated Comments

Solomani Avatar
94 months ago
It's not always a bad thing when the frenemy is doing well.
Score: 5 Votes (Like | Disagree)
djcerla Avatar
94 months ago
More like "Bumper 2017 predicted as Apple orders metric tons of parts ('http://www.dailymail.co.uk/sciencetech/article-4377330/Did-Apple-order-70-million-OLED-screens-Samsung.html')".
Score: 4 Votes (Like | Disagree)
44267547 Avatar
94 months ago
I think the Galaxy S8 is going to be a huge impact for Samsung and considering if a Note 8 debuts in August, but the end game is to see what Apple releases come September. It's Going to be a very interesting year indeed.
Score: 3 Votes (Like | Disagree)
Johnny907 Avatar
94 months ago
Good for them. A healthy Samsung means an innovative Apple. Competition works for fans of both, and I'm about done with complacent Tim Cook.
Score: 3 Votes (Like | Disagree)
69Mustang Avatar
94 months ago
Exactly. As always samsungs profits are proportional to apples success. Thievery. When are Samsung just going to fold and die away. Competition is healthy but not when the competition are blatant thieves. I despise that company and always shudder if I walk past their section in an electrical store.
Might I suggest you get a hobby... or counseling?:p:D The S2 was a long time ago. Apple doesn't care and neither should you. Be happy with your Apple products and let go of the irrational hate. It's not healthy.
Score: 2 Votes (Like | Disagree)
Mad Mac Maniac Avatar
94 months ago
Everybody was like doom and gloom for Samsung. This might be one of the only phone OEM's that can survive a massive recall and still do good. And it's the reason why the Note series still lives on. I'm seriously looking at the Note 8 if Apple does not deliver this year.
This is a good point. Honestly, Samsung is probably in a better situation than Apple. Can you imagine if the iPhone 7 had to entirely be recalled and discontinued? Not only would that absolutely kill sales for a year (presumably they wouldn't have been able to rush out a new iPhone), but the news spin would have been ridiculous. Samsung has a huge backlog of phones they can fall back on. The iPhone would have been dead in the water for a full year.
Score: 1 Votes (Like | Disagree)

Popular Stories

iOS 18 CarPlay Feature

iOS 18 Adds These 5 New Features to CarPlay

Thursday June 13, 2024 7:44 am PDT by
Apple did not mention CarPlay during its WWDC keynote this week, but iOS 18 includes a handful of new features for the in-car software. Overall, there is not a whole lot new for CarPlay on iOS 18, with changes seemingly limited to the Messages and Settings apps so far. Below, we recap everything new for CarPlay on iOS 18. New for CarPlay on iOS 18 1. Contact Photos in Messages App...
iOS 18 Wallet Feature

Here's What's New in Apple Wallet on iOS 18 for Event Tickets and More

Friday June 14, 2024 7:32 am PDT by
iOS 18 includes a handful of enhancements to the Wallet app on the iPhone, with new features for Apple Pay, Apple Cash, event tickets, and more. Below, we outline everything new for the Wallet app on iOS 18, based on information from Apple's press release and a WWDC 2024 coding session. Redesigned Event Tickets Event tickets have an all-new design in the Wallet app on iOS 18, complete...
apple watch series 9 display

Kuo: Apple Watch Series 10 to Get Larger Screen and Thinner Design

Monday June 17, 2024 1:20 am PDT by
This year's Apple Watch Series 10 will be thinner and come in larger screen sizes than previous models, according to Apple analyst Ming-Chi Kuo. In his latest industry note -10-and-98075c44ce92">shared on Medium, Kuo said the screen size options on the next-generation Apple Watch will increase from 41mm to 45mm, and from 45mm to 49mm, while being encased in a thinner design. For reference,...
maxresdefault

First Look at Messages via Satellite in iOS 18

Thursday June 13, 2024 11:29 am PDT by
Apple has been gradually expanding its suite of satellite connectivity features for iPhone, and iOS 18 brings a significant new one in the form of Messages via satellite. The feature allows users to send and receive iMessages and SMS texts, including emoji and Tapbacks, while out of range of cellular and Wi-Fi networks. CNET met up with Apple's senior director of platform product marketing,...
iOS 18 Siri Integrated Feature

You Can Give Siri a New Name With iOS 18's Vocal Shortcuts

Friday June 14, 2024 4:33 pm PDT by
Apple in iOS 18 added a Vocal Shortcuts accessibility feature, and now that iOS 18 is available in a beta capacity, users have figured out that this option can be used to give Siri a new wake word. With Vocal Shortcuts, you can assign a custom phrase that Siri can understand to launch shortcuts and complete "complex tasks," and one of the shortcuts you can set up is an alternative for "Hey...