Monday, 16 October, 2017

Samsung forecasts best quarterly profit in over three years as chips soar

Theresa Hayes | 19 April, 2017, 07:19

The good news for Samsung comes even in the wake of the explosive Galaxy Note 7 handsets and a political bribery and corruption scandal which is now on-going in South Korea.

It is thought that Samsung's semiconductor division is responsible for the better than expected financial results, and analysts predict that the company will see even more success in the second quarter of the year as hype over the firm's newest handset, the Galaxy S8, builds. The operating margin that measures the income against sales rose 6.5 percentage points on year to 19.8 percent in the first quarter.

Samsung earned its highest quarterly operating profit of 10.16 trillion won in the third quarter of 2013 thanks to robust smartphone and chip sales.

The strong guidance failed to shore up investor's confidence in the firm, however, as shares in Samsung fell nearly 1 percent in early trading.

Samsung, which last week unveiled its new flagship smartphone, the Galaxy S8, was helped by strong sales of memory chips.

The Korean giant is projecting the aforementioned figures for Q1 2017 despite the troubles which have plagued them over the past six odd months.

As well as the S8's stunning looks though, Samsung is hoping to lure consumers in with Bixby, a new virtual assistant that, in the South Korean firm's eyes, has the potential to change the way users interact with their devices.

Lee Jae-yong, the vice president of the Samsung Corp. conglomerate, has also been charged with bribing a friend of disgraced former president Park Guen-hye.

A bound and handcuffed Lee Jae-Yong, the vice-chairman of Samsung Electronics, arrived at the Seoul Central District Court as his trial opened Friday. The phone will most likely sport an iris scanner, a tool that represented one of the main selling points for the Note 7. The Samsung Galaxy C7 Pro tries to standout from other Samsung smartphone by opting for a full metal unibody which is just 7mm thick.

If it proves to be true, this confident prediction by Samsung will see the company trump both its results for the same period past year, as well as their troubled holiday quarter. That display may also make its way onto Apple's next iPhone later this year, with the company reported to have placed an order for about 160 million OLED panels from Samsung Display. However, the company didn't provide any details about its sibling Galaxy C7's launch.