Samsung reports record 2017 profit, announces 50-1 stock split

Samsung reports record 2017 profit, announces 50-1 stock split
Riding what it called a memory chip "super-cycle,"  Samsung reported record profits for 2017 and said that memory chip sales should remain strong this year. For 2017, Samsung announced a record profit of 53.7 trillion won ($50 billion USD). The previous record of 36.8 trillion won was set in 2013. Operating profit for the fourth quarter rose 64% to 15.15 trillion won ($14.13 billion USD).

Samsung's mobile division was essentially flat in 2017 during the final three months of the year. From October through December, the unit contributed a profit of 2.4 trillion won ($2.23 billion USD). The previous year, the mobile group announced Q4 profits of 2.5 trillion won. Samsung expects 2018 to get off to a good start with the unveiling next month of its latest flagship handsets, the Samsung Galaxy S9 and Samsung Galaxy S9+. For 2018, Counterpoint research director Tom Kang expects competition from China to limit Samsung's growth in smartphone shipments to a 1-2% gain.

The company's Display unit had a 1.4 trillion yen profit ($1.3 billion USD) in the fourth quarter, up slightly from the 1.3 trillion yen profit it had the previous year. Analysts expect Samsung to report higher earnings growth in this division this year as Apple increases the number of iPhone models that are equipped with an OLED screen.

Samsung also announced a dividend of 21,500 won per share ($20 USD) and a 50-1 stock split. Investors loved the news, driving Samsung's stock up 8% in Korea.

source: Reuters

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23 Comments

1. Tziggy14

Posts: 622; Member since: Sep 02, 2014

Samsung spends billions of dollars into R&D more than any Android OEM. It shows in the innovation they have put into their Galaxy phones time and again

3. Subie

Posts: 2271; Member since: Aug 01, 2015

Their phones are fantastic, but this article is about all Sammy's divisions being the contributing factor. Especially the memory chip business - based off of the first sentence anyways. The second paragraph suggests their Galaxy sales actually did worse in Q4 then in the previous year. And that's really odd considering the Note 7 recall. So if it was the phone division that bumped them up then they must've had a fantastic summer...

13. piyath

Posts: 2445; Member since: Mar 23, 2012

The problem with Samsung is they make money by making components, that's the real problem for them because someone else can snatch their place very easily anytime. Consumers don't have a clue about Samsung in this regard. Apple make money from end products which goes directly to the consumers hand with the "Apple" name on them. Thus they make a name for them and a loyal base every single day. That name, that brand loyalty is the long term investment and that is priceless.

19. cmdacos

Posts: 3818; Member since: Nov 01, 2016

The problem with Apple is they aren't as diversified. They are incredibly dependant on the iPhone where as Samsung is incredibly diversified. Apple isn't at risk by any means but their latest moves point to opportunities when they try and push too hard.

27. southernzombie

Posts: 352; Member since: Jan 17, 2017

As long as apple phone are using parts that come from samsung, samsung will be just fine.

28. htcisthebest

Posts: 433; Member since: Nov 15, 2011

Even if iphone sales go down (which I am sure will happen over the next years), other manufacturers will still turn to Samsung for their beautiful OLED screens. So no need to worry.

18. ah_sukk_it

Posts: 31; Member since: Jan 18, 2018

phones did badly. chips were good. phones are way too expensive. same with apple.

21. mootu

Posts: 1368; Member since: Mar 16, 2017

How did phones do badly? Sales for 2017 were flat, not up not down. They still sold over 100 million more phones than anyone else. In a time when people are keeping their phones longer it is a pretty good result.

4. tedkord

Posts: 17088; Member since: Jun 17, 2009

It amazes me the profits corporations take in these days.

5. worldpeace

Posts: 3092; Member since: Apr 15, 2016

After all the hype about Samsung get tons of extra profit from Apple's AMOLED order (PhoneArena write like a dozen articles about it), in the end it's just extra $0.1billion profit from Samsung's display.

29. southernzombie

Posts: 352; Member since: Jan 17, 2017

lol JUST $0.1 billion. that would be $100,000,000. Yeah no big deal.

7. CreeDiddy

Posts: 2116; Member since: Nov 04, 2011

These numbers show you that Samsung Mobile is not carrying the weight of the company only their Semiconductor business. All along people thought that Samsung Mobile division was doing as well as it seemed. Nearly a flat book of business. Samsung is getting ate up by All Android manufacturers and the iPhone. I see Samsung within 5 years focusing on chipset market and might be out as a player in the mobile space. I find it hard to believe, but it could happen. They will continue to focus on consumer appliances and other business ventures, but their smartphone growth is getting shredded...

10. kiko007

Posts: 7465; Member since: Feb 17, 2016

"These numbers show you that Samsung Mobile is not carrying the weight of the company only their Semiconductor business. " That depends on how you'd define success when it comes to Mobile. Really, the only three players making ANY relevant amount of money are the big three: Google, Apple, and to a lesser extent, Samsung. However, their Mobile division hasn't carried the weight of their earnings for YEARS , if ever. Expected it to do so with an ASP of $205 bucks would be downright laughable. So in that regard Samsung is golden. However, what should trouble Samsung is the fact that THIS specific quarter was flat, considering the company's previous Q4 "issues". Flagships as a whole are garnering less consumer appeal, that has become readily apparent.

11. Macready

Posts: 1797; Member since: Dec 08, 2014

Newsflash, this has been predicted for years and essentially, growth has been stalling (even falling back previously) for years too. It's actually a monumental achievement to stay flat in a market with increasing competition... for years. Samsung is competing with much cheaper offerings and more offerings every year from China et al. Much more so than for example Apple.

17. ibeginner

Posts: 14; Member since: May 23, 2017

you are not alone, same things says US analytics a year ago. i get this info to Eldar Murtazin - famous ru samsung insider - he says - ha,ha,ha! (dont believe :) ) but 3 years in row samsung have flat sales and rise chines brands that eat samsung marketshare. in china samsun is not in top 5, may be 10 place (3% share) in india - xiaomi market share is like samsung, year ago only 4 place.

23. iushnt

Posts: 3052; Member since: Feb 06, 2013

I have no idea what I just read

24. ibeginner

Posts: 14; Member since: May 23, 2017

maybe. because my english is not good

8. Mr.Pussy

Posts: 348; Member since: Feb 16, 2017

Well done Samsung.

12. tiz_meh

Posts: 64; Member since: Aug 11, 2017

Samsung made 2.43 billions in q4 from mobile division alone. How is that not good? Who made 1 billion profit in mobile division for entire year besides Apple.

20. cmdacos

Posts: 3818; Member since: Nov 01, 2016

I see iPhone eks display had little benefit to Samsung's profit for Samsung Display.

26. sissy246

Posts: 6956; Member since: Mar 04, 2015

Don't care what they make. Just keep giving me what I want in a phone and we are good.

* Some comments have been hidden, because they don't meet the discussions rules.

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