Samsung projected to record highest ever quarterly profits, as it announces Q2 earnings estimates
The company has said that revenue in the quarter ending in June rose to roughly $52 billion (60 trillion won), making for an operating profit of $12.11 billion (14 trillion won) – a whopping 72% profit increase from the same period in 2016. The numbers beat projected estimates by analysts and indicate a more-than-positive state for Samsung, ahead of its announcement of the Galaxy Note 8 later this year.
We can’t say that we are entirely surprised by the report, given the fact that Sammy has been caught up in various large-scale commercial dealings in the capacity of a manufacturer of important smartphone parts. The company has entered into multi-billion, multi-year-long agreements for OLED units with Apple, while this week we heard of its $18 billion-worth plans of expanding its memory chips and displays production. Earlier estimates showed that Samsung is projected to have banked revenues of up to $15 billion in semiconductor sales alone in this past quarter.
The thing is that Samsung’s revenue is boosted by many and different sources, and not just phone sales. Apparently, mobile phone sales in Q2 accounted for roughly half the income that was brought by chip sales, while display sales came in at about 50% of the revenue from phone shipments. The company is expected to release a detailed breakdown of its income in the weeks to follow.
Samsung’s comfortable financial position is further supported by the positive reception of its latest flagship models, namely the Galaxy S8 and S8 Plus. The premium-tier handsets have done a lot to repair Sammy’s reputation after tons of unpleasant Note 7-related publicity last year, and analysts project healthy sales for the models, as we go into the second half of the year.
At this point, 2017 seems to be a largely dynamic and profitable year for Samsung overall, and we, just like analysts predict, can’t see why its streak would not continue through the end of the year.