Samsung Predicts Best-Ever Profits in Last Quarter

by

Samsung tipped its best-ever operating profit on Friday, with likely record earnings in the company's second quarter ending in June (via Reuters). The Apple rival predicted quarterly operating profit of 14 trillion won ($12.11 billion), a 72 percent jump from a year earlier. The estimate includes sales from the Galaxy S8 for the first time, but analysts pointed to Samsung's components business as the main driving force behind the latest projected figures.

Samsung has yet to provide a breakdown of its performance over the April-June period, with a full earnings report due later this month, but the South Korean company is known to have benefitted from higher prices for the memory chips it supplies that go into servers and smartphones. Samsung expects revenue to be up 18 percent year-over-year at 60 trillion won. Shortages for both DRAM and NAND chips are expected to persist for the rest of the year, increasing the likelihood that 2017 could represent Samsung's best-ever annual earnings.


Ironically, Samsung's continued success is expected to hinge increasingly on the performance of its biggest rival. Apple has reportedly turned to Samsung for more NAND chip supplies for its upcoming phones, since Samsung has relatively stable yield rates and has scaled up its output while other chip suppliers have lagged.

Samsung is also being helped by its sales of OLED panels, which are expected to become the go-to display standard over the coming years. Apple has reportedly signed a two-year contract with Samsung for the supply of up to 92 million curved OLED panels, as it attempts to ramp up capacity for this year's release of its high-end "iPhone 8", before transitioning fully to OLED displays for all its phones in the second half of 2018.

Samsung said on Tuesday it would invest $18.6 billion to extend its lead in memory chips and next-generation displays. Meanwhile, sales of the upcoming Galaxy Note 8 will be closely watched in the third quarter, after its predecessor was pulled from the market last year because of fire-prone batteries. Samsung is expected to unveil the handset in August.

Tag: Samsung

Top Rated Comments

(View all)
Avatar
40 months ago
Samsung make great displays and this is good Apple choose Samsung for the supplier of OLED display for next iPhone.
Score: 7 Votes (Like | Disagree)
Avatar
40 months ago
Cue the "Samsung is greedy" and "perhaps they should pay their slave laborers better in Korea, China and elsewhere" comments.

Oh wait, that's only happens in Apple threads. o_O
Score: 6 Votes (Like | Disagree)
Avatar
40 months ago
Then Samsung appears to be doing something right!
Score: 4 Votes (Like | Disagree)
Avatar
40 months ago
More impressive is that Samsung is not only the most profitable with the highest quality but that they also manufacture a lot of the core components in the West from the Austin Texas fab unlike Apple which is a front for everything made offshore.
Score: 2 Votes (Like | Disagree)
Avatar
40 months ago

Then Samsung appears to be doing something right!

It also means Apple is doing something right as well as the new iPhone is spurring this growth.
Score: 2 Votes (Like | Disagree)
Avatar
40 months ago
Samsung phone division is completely separate to the components.

The phone division pay the same as any other manufacturer for parts and are subject to the same market forces and wait list. Zero preferential treatment. Sounds insane but more to do with anti-competition laws.

But the profits are bundled up into the Samsung group figures.
Score: 2 Votes (Like | Disagree)

Top Stories

Apple Takes Legal Action Against Small Company With Pear Logo

Saturday August 8, 2020 11:09 am PDT by
Apple is taking legal action against the developers of the app "Prepear" due to its logo, according to iPhone in Canada. Prepear is an app that helps users discover recipes, plan meals, make lists, and arrange grocery deliveries. The app is a spinoff of "Super Healthy Kids," and the founders claim that they are facing litigation from Apple. Apple reportedly takes issue with Prepear's logo, ...

Apple Seeds iOS 14 and iPadOS 14 Public Beta 4 to Testers

Thursday August 6, 2020 10:05 am PDT by
Apple today seeded new public betas of upcoming iOS 14 and iPadOS 14 updates to its public beta testing group. Today's software releases, which Apple labels as fourth betas to keep them in line with developer betas, are actually the third betas that Apple has provided and they come two weeks after the prior beta releases. Public beta testers who have signed up for Apple's beta testing...

Supposed iPhone 12 Display Unit Leaks

Thursday August 6, 2020 8:13 am PDT by
An image supposedly of an iPhone 12 display unit has been shared online by leaker "Twitter user Mr. White". Compared to images of an iPhone 11 Pro display piece, this new unit has a reoriented display connector, reaching up from the bottom of the display, rather than from the left-hand side on iPhone 11 Pro. This may be due to the logic board moving to the other side of the device. A...

8 Third-Party Home Screen Widgets That You Can Try Out Now on iOS 14

Wednesday August 5, 2020 12:56 pm PDT by
One of the biggest new features of iOS 14 is Home Screen widgets, which provide information from apps at a glance. The widgets can be pinned to the Home Screen in various spots and sizes, allowing for many different layouts. When the iOS 14 beta was first released in June, widgets were limited to Apple's own apps like Calendar and Weather, but several third-party developers have begun to test ...

New 27-Inch iMac's Storage Affixed to Logic Board, 4TB and 8TB Configurations Have Expansion Connector

Friday August 7, 2020 7:46 am PDT by
Following a report from German blog iFun.de that claimed the new 27-inch iMac's flash storage is soldered to the logic board, MacRumors has obtained additional information in an internal document for Apple technicians. In the document, Apple says that the flash storage is indeed affixed to the logic board and cannot be removed. However, for the 4TB and 8TB configurations, Apple says that a...

2020 iMac Teardown Reveals Internal Changes and Similarities

Saturday August 8, 2020 12:44 pm PDT by
A teardown video, shared by OWC, reveals the internal changes in the new 2020 27-inch iMac. The 2020 27-inch iMac was announced earlier this week with 10th-generation Intel Core processors, AMD Radeon Pro 5000 series graphics, up to 128GB of RAM, up to 8TB of storage, a 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, higher fidelity speakers, and...

Kuo: iPhone 12 Camera Lens Supplier Experiencing Quality Issues, But May Not Affect Launch Schedule

Thursday August 6, 2020 9:30 pm PDT by
One of Apple's camera lens suppliers for the upcoming non-Pro iPhone 12 models is having quality issues, according to a new research note from analyst Ming-Chi Kuo seen by MacRumors. The issues are, however, unlikely to have an impact on Apple's shipping schedule, presuming that Apple's other main supplier can make up the difference. Kuo says that Genius Electronic Optical has discovered...

Google's $349 Pixel 4a vs. Apple's $399 iPhone SE

Wednesday August 5, 2020 1:45 pm PDT by
Google this week launched its newest smartphone, the $349 Pixel 4a, a low-cost device that's designed to compete with other affordable devices like Apple's iPhone SE. We picked up one of the new Pixel 4a smartphones and thought we'd check it out to see how it measures up to the iPhone SE, given that the two devices have such similar price points. Subscribe to the MacRumors YouTube channel ...

Sony WH-1000XM4 Noise-Canceling Headphones Now Available for $350

Friday August 7, 2020 2:01 am PDT by
Sony's flagship WH-1000MX3 noise-canceling headphones have been among the best on the market for some time, and this week Sony released its fourth-generation WH-1000XM4 headphones boasting some notable improvements on the previous model. The XM4s feature the same basic design as the XM3s, but are one gram lighter at 254 grams due to slightly larger ear pads and some subtle tweaks to the...

Apple Announces New 27-Inch iMac With 10th-Gen Processors, Up to 128GB RAM, 1080p Webcam, True Tone, and More

Tuesday August 4, 2020 8:07 am PDT by
Apple today announced a new 27-inch iMac with faster 10th-generation Intel Core processor options, next-generation AMD graphics, up to 128GB of RAM, a higher-resolution 1080p front-facing FaceTime camera, a True Tone display with a nano-texture glass option, a T2 chip, higher fidelity speakers, studio-quality microphones, and more. A breakdown of the new 27-inch iMac's features and specs:10th...