Samsung Brings In The Big Profits As Revenues Soar 29%
The Korean conglomerate said that demand for its memory chips and a recovery in smartphone sales with the roll-out of the new generation Galaxy Note 8 had delivered the result they wanted.
The figures come only two weeks after chief executive Kwon Oh-Hyun resigned, saying the South’s biggest firm was facing an “unprecedented crisis” and its current profitability was “merely a fruit of decisions and investment made in the past”.
The world’s biggest maker of semiconductors, televisions and smartphones said that Samsung will continue investing for future results.
Samsung said the earnings outlook was positive thanks mainly to the chip business, with conditions in that market likely to “remain favourable” in 2018 despite Apple investing in their own manufacturing partners.
The Company has forecast greater sales of flexible OLED screens used in smartphones.
The chip business was Samsung’s top earner in the third quarter as it booked a record 10 trillion won operating profit, from 3.4 trillion won from the previous corresponding period.
Profits from mobile devices jumped to 3.3 trillion won compared with just 100 billion won at the same time last year, when the company booked the costs of the withdrawal of its fire-prone Note 7 gadget.
Samsung predicted “positive growth” in the semiconductor business next year as technological advances in artificial intelligence (AI) and machine learning fanned demand for high-powered processor chips.
“The technological advancement of mobile devices with dual camera, 3D sensors and on-device AI will spur DRAM (dynamic random-access memory) growth,” it said.
Samsung has sustained its lead in the market partly by investing massively in building and expanding semiconductor factories — often faster than its rivals.
And its investment in infrastructure, mostly on chip plants, will reach a whopping 46.2 trillion won just for this year, compared to 25.5 trillion won in 2016, it said.