Samsung cautious of the future despite huge profits

Samsung cautious of the future despite huge profits

In case you haven't heard already, Samsung Electronics is raking it in big time in 2017. Thanks to its booming semiconductor and display businesses, the tech giant has posted operating profit estimates of $12.11 billion for the second quarter of this year. 

To put these numbers into perspective, this is the most profitable April-June period in the history of the company, with many analysts predicting that Samsung might surpass Apple in terms of profit for the first time.

While this is undoubtedly great news for fans of the brand and shareholders alike, a new report from South Korea suggests that the executive branch of the firm remains wary of its future. Why? Well, to answer that, we must first clarify what exactly is Samsung.

An appropriate term to describe Samsung in Korean is the word "chaebol" - a large, family-owned business conglomerate. Namely, we're talking about the Lee clan which is supposed to sit at the top of this enormous business empire and take all the big and important strategic decisions. However, there seems to be a succession crisis going on at the moment. 

Lee Kun-hee, the official chairman of Samsung Group, suffered a heart attack back in 2014, leaving his only son, Jay Y. Lee, to succeed him as the de-facto leader. All was relatively well and good, until the heir apparent was detained for charges of committing perjury, embezzling funds, and playing a key part in the colossal influence-peddling scandal involving former South Korean President Park Geun-hye. 

According to The Investor, Samsung officials accredited the current success of the company to bold investments which were made three to five years ago by members of the owner family. The current lack of leadership at the highest levels will make it difficult for such decisions and ventures to be made for the future when Sammie has to prepare for an eventual fall in demand and pressure from Chinese manufacturers. 

While no one is certain what will happen next, we might get some clarity on the matter when Jay Y. Lee's trial is concluded. The court needs to reach a conclusion by August 27, 2017, as he can be legally detained until then as per Korean law. 

source: The Investor

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9 Comments

1. Hallyu

Posts: 790; Member since: Jul 21, 2015

There's no doubt that Samsung is going to put Apple in its cave very soon, apparently. People have realized the need for quality over quantity, the need for first class over low class, the need for a few reliable finishes over many dodgy finishes, and the need for real innovation with humbleness. This is how a successful business is doing. Samsung is like Jesus 2.0. It's already set the right and futuristic path for us, a path for tech revolution, and it will be so adorable to be a great great part of this extraordinary world.

2. gehrig

Posts: 423; Member since: Apr 17, 2014

WTF are you smoking?

3. Hallyu

Posts: 790; Member since: Jul 21, 2015

Go away hater, you're not worth my debate.

5. VasiliS7

Posts: 183; Member since: Jan 10, 2017

Apple and Samsung are two defferent Companies. Apple sales Services with little hardware when Samsung sales Hardware with little Software. They are both huge companies but yes,some day Samsung will pass the Apple. Apple remains as a company with no innovation from 2007.

4. IronTech

Posts: 153; Member since: May 27, 2016

I had expected to hear this from Apple. Samsung said it first.

6. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung LTD has nothign to do with Samsung Electronics. Why is ti when Samsung Electronics is doing well, you all have to bring up some negative BS? Whatever troubles Samsung LTD has is their own issues. Samsung Electronics has nothing to do with how other Samsung businesses run their own business. Samsung is beating Apple and your only retort is to bring up some non-associated BS. When Apple has issues, do you resurrect every negative associated issue? NO!!!! So why go out of your way against Samsung? You guys are such haters, and there isn't any reason.

7. Ninetysix

Posts: 2931; Member since: Oct 08, 2012

You seem more salty ever since you came back from ban camp. Did you read the source of the article?

8. obedchuni

Posts: 303; Member since: Jun 16, 2014

CUPERTINO, California — January 31, 2017 — Apple today announced financial results for its fiscal 2017 first quarter ended December 31, 2016. The Company posted all-time record quarterly revenue of $78.4 billion and all-time record quarterly earnings per diluted share of $3.36. These results compare to revenue of $75.9 billion and earnings per diluted share of $3.28 in the year-ago quarter. International sales accounted for 64 percent of the quarter’s revenue. cash in hand 10 billion, where as samsung cash in hand is 3 billion, how on earth could samsung pass apple.inc on profit margin

9. PhoneCritic

Posts: 1337; Member since: Oct 05, 2011

I believe this is the whole conglomerate - hence since Samsung makes everything from chips to military hardware their profits went through the roof as the display and semiconductor branches profits sky rocketed. I don't think the article reflects the overall numbers just the display and semiconductor numbers. that's my guess. can anyone here give more information on this?

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