Samsung hits record quarterly profit on back of semiconductor business
27 Июля, 2017, 18:23 | Author: Yolanda Murray
Samsung also said its net profit soared 89 percent year-on-year to reach 11 trillion won ($9.88 billion) - a trillion won higher than estimated by Yonhap Infomax.
Samsung said its record-high earnings were mainly buoyed by the booming chip market amid rising demand for storage products.
"The company's strategic model going against Apple Inc's iPhone 8 and Samsung Electronics' Galaxy Note 8 in the second half of 2017 is expected to fall short, making it hard for mobile revenue growth". It said it also expects to see increased orders of memory chips for smartphones with a number of handset manufacturers set to launch new models in the second half of the year.
Market kingpin Samsung Electronics gained 0.32 percent, while SK hynix, a major chipmaker, was up 3.89 percent.
The chip unit achieved this performance thanks to strong demand for high-density DRAMs and SSDs for servers in a low-supply environment. Analysts expect the iPhone maker to report revenue of $44.9 billion and an operating profit of $10.5 billion, according to Reuters and Bloomberg data.
The local stock market opened higher on USA gains and a record second-quarter earnings report from Samsung Electronics, the top cap here.
For the full year, Intel is expected to post $60 billion in annual sales, according to a market consensus polled by FactSet, a financial data provider.
In the second quarter, the divisions producing semiconductors and components boosted the company's accounts by jointly achieving 42.83 trillion won in revenue, which is 40.7 per cent more than in the same quarter of 2016.
This month the firm said it will invest 20.4 trillion won by 2021 to expand and upgrade its chip plants in the South Korean cities of Pyeongtaek and Hwaseong.
Not just tech companies but also transport, retail, tourism, food and other industries are seeking ways to better use or manage data, to gain insights on trends or customer preferences and otherwise make money from "big data". "As these [cloud infrastructure] players grow, they will only need more chips and that helps Samsung".
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