Samsung forecasts its best quarter in four years, to haul in $8.8 billion in profits


After much uncertainty how would Samsung do in the second quarter that the Note 7 wasn't on sale, and only running on Galaxy S7 and S7 edge fumes, the ballyhooed analyst predictions turned out true in the end. Samsung itself just chipped in to release its earnings guidance for the first quarter of the year, and it seems that it will break a record again, thanks to stellar performance of its chip businesses.

Samsung is forecasting operating profit of no less than $8.8 billion for the January-March period, which would be its best quarter in four years. We'll now have to wait for the actual detailed numbers in a week or two, where Samsung will break down its Q1 2017 performance by categories, so that we could take a long and hard look at the mobile division. 

The exact range that Samsung forecasts is 9.8 - 10 trillion ($8.8 billion) Korean won of operating profit on 49 - 51 trillion won ($44.9 billion) in sales, and, if history is any indication, it will be right in the ballpark.

source: Samsung

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25 Comments

1. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Go sammy go ...

2. Tabby_Tiger

Posts: 305; Member since: Jan 23, 2017

I expect a lot of people that would've bought a Note 7 to buy the S8+.

7. Tziggy14

Posts: 624; Member since: Sep 02, 2014

People who buy the Note phones are a differnet breed from those who buy the Galaxy S phones. They'll likely be waiting for the Note 8.

12. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

Thats where I am right now. I dont know if I should upgrade to the S8+ or wait for the Note 8 in the Summer/Fall

15. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

AT T-Mo you can have both. I am on Jump on demand for my line and on of my other lines is on Jump Lease. With Jump on Demand, you can Jump to a new device up to 3 times a year. You simply have to pay off 50% of the device. SO I am gettign the Note 8. Just based on regular device payments, I will have to come out of pocket for about $150 when the Note 8 comes. I will just pay it an Jump! to the Note 8. So I will still get to own 2 devices in a single year for the price of one. I did that with the S6 edge, edge+ and Note 5. I jumped to all 3 in the same year.

24. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

I have JUMP! as well...............Im wondering if I should use it now for the S8+ or wait for the Note 8

23. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

"They'll likely be waiting for the Note 8." Precisely where I'm at. The Exynos Note 7 was going to be my first ever Samsung Smartphone, but alas, the battery fiasco happened, Samsung sorted out the problem in a reasonable manner, now patiently waiting for the Note 8...

3. Tyrion_Lannister unregistered

The S8/S8+ seem to be nearly perfect devices with virtually no competition. Obviously they are going to cash on that. Add to the fact that you can get a brand new S7(exynos) for $400 or less just strengthens the game for Samsung, which beats even Oneplus in value for money.

4. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Q2 earnings will be huge .... best quarter ever!

5. trojan_horse

Posts: 5868; Member since: May 06, 2016

And this is how Samsung is set to dominate bthe Android market once again in this year. Sammy rules.

6. rd_nest

Posts: 1656; Member since: Jun 06, 2010

I hope they invest this in R&D. Just filling the pockets of stock holders should not be the goal. I want them to increase R&D so that the common man can get the benefits.

8. Tyrion_Lannister unregistered

They did a lot of R&D with this phone and it has a lot of things I found much after the event. For example, all the modes in display are tuned for specific use cases. Adaptive display is for high ambient light scenarios, AMOLED cinema is DCI-P3 for correct gamut for HDR videoes, AMOLED photo is Adobe RGB and Basic mode is sRGB now. Also, it's the first phone with linux 4.4 kernel. All other phones are on 3.x. It's a truly remarkable device, if you look past the battery size.

9. dazed1

Posts: 805; Member since: Jul 28, 2015

Cinema is DCI P3 for a long time. Basic mode is sRGB for a long time And yes, it is amazing.

11. Tyrion_Lannister unregistered

I don't think cinema was DCI-P3. Cinema used to be sRGB during the S6 days. That changed with the S7, but I don't think it was DCI-P3 even with S7.

14. Techist

Posts: 311; Member since: Jan 27, 2015

"Also, it's the first phone with linux 4.4 kernel. All other phones are on 3.x." Since it is running the same Android 7.x as many other phones, how is it on different kernel? Kindly explain.

18. Tyrion_Lannister unregistered

You can have a different kernel using the same OS. Kernel is a part of the OS, a very major part actually. But android doesn't have strict linux kernel version number for each release, which is ideal for an open source OS.

20. Techist

Posts: 311; Member since: Jan 27, 2015

Oh, didn't know that. So what are the benefits or new features of Linux 4.4 vs 3.x? Please write an article on your blog explaining all this. A lot of us would find it very interesting!

22. Tyrion_Lannister unregistered

Sure. Thanks for the idea. I'm getting really behind on schedule here due to end semester exams approaching soon. I will get back to track in the next week or so.

16. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

There is nothing wrong with the battery size. The Note 7 has the same size and it last longer than the S7 edge, and the Note has more features. There is nothign wrong with the battery size. You simply have it in your head to find something negative about a device that literally has NOTHING wrong with it. No device is perfect. But you all are just nick-picking the battery size and the fingerprint reader location. Its stupid!

17. Tyrion_Lannister unregistered

I was talking about the S7, not the plus. The plus is fine.

19. Techist

Posts: 311; Member since: Jan 27, 2015

From the article: "We'll now have to wait for the actual detailed numbers in a week or two, where Samsung will break down its Q1 2017 performance by categories, so that we could take a long and hard look at the mobile division." As has been pointed out in the past, the tech media have this biased approach of isolating Samsung's phone sales, ignoring Samsungs other profit drivers, and then comparing it with Apple's total profits from all divisions (phones, tablets, App store, Macs, iTunes, etc), thus creating the false narrative that Apple is making 95% or more the of profits in the smartphone space. The comparison should be phone sales to phone sales, or company sales to company sales, not one company's phone sales to another company's total sales.

21. Techist

Posts: 311; Member since: Jan 27, 2015

Wrong placement of this comment. It was supposed to be a completely new topic, not part of this thread.

10. darkkjedii

Posts: 31328; Member since: Feb 05, 2011

It's all about that bottom line.

13. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Samsung is gonna die. The Note 7 is gonna make Samsung blow up. Apple will rise from Samsung ashes and take over the world...lol I think based on past sales numbers, the Galaxy Note is a very niched product. The Note 3 had the highest sales pegged at 35M. But the 4 and 5 were not as good as the 3 IMO, and they didnt sell very well either. Both sold about 20M+ each. But the Note 7 would have easily matched the Note 3 sales had it not has issues. But since the Note is not Samsung's flagship, I dont understand how any fool though one model for such a low selling product was gonna bring Samsung down, who makes 50+ models. If this had been the Galaxy S, It would certainly have hurt their profit margin, but it is not the only product they sell. But if this had been lets say just the 4.7" iPhone, which accounts for more than 50% of Apple iPhone sales overall, because its smaller and cheaper, Apple would have been the one going down in flames. But Apple would never remove a faulty product from retail, if the Feds don't make them. As many products Samsung makes, I am sure millions of them are defective and don't work properly. That doesn't mean they are of low quality because the number of the ones that fail, are far lower than the ones that dont. I bet Samsung worse product didnt have a 58% failure rate. And from the facts we have seen, the cause of the iPhone failures, were not due to ANY components they sourced from Samsung. The failing are from the cheap Chinese made batteries, or some other parts. Samsung's storage, RAM, CPU fabrications were not the fail points of an iPhone. So that means since Apple continues to sources Samsung, they know Samsung makes the best parts. And if everyone considered the iPhone to be so great, thank Samsung for that too.

25. obedchuni

Posts: 337; Member since: Jun 16, 2014

Hope they will fill up those holes created by note 7, instead they should name is note 6....just trying to compete with Apple they lost

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