Samsung reports record $9.7 billion profit, buoyed by a 'memory super cycle'


First, the numbers - Samsung made $12.7 billion of operating income and $9.7 billion of pure profit last quarter, the highest in the company's history. That's net income of about 18% on $54.8 billion of revenue, and a very healthy margin for a company that is in the fickle consumer electronics business. That's not the division where most of the profit originated, though, but rather Samsung logged a stellar quarter because of growing demand for its memory chips, OLED display panels, and other humble components it has been building capacity for in the last decade or so. Even with the company's head Lee Jae-yong awaiting bribery trial in detention, Samsung still managed to revamp its inner workings enough to satisfy all demand for its wares.

Buoyed by voracious requests for DRAM and NAND memory chips for everything - from servers to IoT connected devices - Samsung's semiconductor division alone was responsible for the whopping $7.2 billion in operating income on sales of $15.8 billion. That's about 60% of the total profits made by what analysts are already calling a "memory super cycle," but there was a decent contribution from something that is near and dear to our hearts as well - the mobile department. 

It made Samsung $3.7 billion in operating profit, riding on the coattails of robust Galaxy S8 and S8+ sales that Samsung said are 15% higher than the ones of the S7 last year. That income is still a bit less than what Samsung Mobile generated in the same quarter last year, due to the design overhaul of the new flagship Galaxies, and the respective rise in component prices that went into the Infinity Display chassis. 

Samsung is expected to beat Apple's profits for the second time in its history, but the spring and summer quarters are traditionally slower for the team from Cupertino, plus Samsung warned that profit for this quarter may be lower due to marketing expenses over the upcoming Note 8, and a higher share of midrange sales, after demand for its flagships has been satisfied and tapered off.

source: Reuters

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66 Comments

72. mrochester

Posts: 1050; Member since: Aug 17, 2014

Samsung makes great SSDs and processors, and this profit hauls shows that. It's a shame their smartphones are so crap thanks to Android.

59. tedkord

Posts: 17532; Member since: Jun 17, 2009

Samsung are seen as market leaders in many areas now. Display, memory, smartphone. LG beats them in TV with their OLED displays VS Samsung going for quantum dot.

46. ph00ny

Posts: 2085; Member since: May 26, 2011

Even with the company's head Lee Jae-yong awaiting bribery trial in detention, Samsung still managed to revamp its inner workings enough to satisfy all demand for its wares. How do those two relate to each other?

50. Mr.Pussy

Posts: 348; Member since: Feb 16, 2017

What a messed with this bribery at Samsung. It happened a lot here in US but we get away with. Anway with all the pains they going thru, I am glad they do well. Congrats Samsung!

40. iczer

Posts: 161; Member since: Oct 14, 2015

Apple sales are slowing down in the largest smartphone market (China) ?? Samsung is doing more profits than apple in the tech industry? My wife's iPhone 7 lags and stutter each time that I use it??? What a great day.

33. trojan_horse

Posts: 5868; Member since: May 06, 2016

Right on, @adi90 Here is another article to prove that iTard piyath wrong. http://www.nationalpost.com/m/samsung electronics logs record profit memory chip boom/13912777/story.html From that link: "Seemingly invincible Samsung Electronics appears set to log record annual profit this year as exploding use of data in mobile devices and the "memory supercycle" help it surmount the jailing of its de facto leader and sidestep losses from its fire-prone Galaxy Note 7s." Clearly it says SAMSUNG ELECTRONICS!!! Wouldn't expect much sense from piyaty, anyways.

49. Mr.Pussy

Posts: 348; Member since: Feb 16, 2017

"Wouldn't expect much sense from piyaty" Maybe he can go change his name Piyaty to dumbass now? lol.

54. sissy246

Posts: 7129; Member since: Mar 04, 2015

"Wouldn't expect much sense from piyaty, anyways" Not at all.

32. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Fake news 9.7$ billion is actually pure profit not profit , the profit is 12.67$ billion , which beats apple last quarter in history ( 10.55$ billion )

41. MrShazam

Posts: 987; Member since: Jun 22, 2017

Gotta twist the news into apple's favour however they can. That's just how deep some authors bury their head in apple's behind.

28. trojan_horse

Posts: 5868; Member since: May 06, 2016

"No you dumb ass... This is Samsung as a whole.....lol Don't act like a 5 year old now" Are you mental? See this article:http://www.stltoday.com/business/samsung-electronics-reports-percent-jump-in-profit/article_2f1e31c2-769c-592d-8043-3778fe5b5b20.html Quote from that link: Samsung Electronics on Thursday, July 27, said its second-quarter profit surged 85 percent to record high thanks to memory chips. And again: "Seemingly invincible Samsung Electronics appears set to log record annual profit this year as exploding use of data in mobile devices and the "memory supercycle" help it surmount the jailing of its de facto leader and sidestep losses from its fire-prone Galaxy Note 7s." Who's the dumbass now??? Now get lost, iTard.

18. Zylam

Posts: 1827; Member since: Oct 20, 2010

Good work Sammy, but sad news for Android. Samsung can now continue to molest Android into the ground. What hope do the likes of Moto and LG have when Samsung will spend more than both their profits combined on marketing. Another few years of great hardware ruined by ugly and bloated software.

19. slow00

Posts: 97; Member since: Mar 08, 2017

i respect your opinion about the software but i think one of the main reasons that make users to keep purchasing samsung devices (apart of course from the hardware and excellent marketing) is exactly the bells and whistles of the UI. bloatware or not many people love those features opposite to stock android which a majority (myself included) consider dull and boring.

20. Plasticsh1t

Posts: 3109; Member since: Sep 01, 2014

The problem with these other companies is they don't spend much on advertisements and Samsung takes all the profits. They need to spend more on ads.

25. slow00

Posts: 97; Member since: Mar 08, 2017

Agree. Huawei is the only company on the right path but they need some time to theat the koreans. However samsung advantage in the hardware department is considerable so i guess they will always be one step ahead (i.e i guess by the time huawei introduce curved displays samsung will move to foldables and so on)

58. tedkord

Posts: 17532; Member since: Jun 17, 2009

That's a load of crap. HTC spent a billion dollars on one year's advertising a few years ago. The result? Nothing. It takes more than advertising, if takes a compelling product.

31. AxelFoley unregistered

If the software was truly a problem then one would think that we'd still see Google Play Editions. We don't. So it looks like the consumer has spoken. If the software was bad to the end user, no amount of marketing would cover for it Ironically, they will likely spend more on software development than the likes of Moto and LG combined.

17. abdoualgeria

Posts: 928; Member since: Jul 27, 2015

Good work sammy In my life i will buy only samsung products its the best on the market

16. darkkjedii

Posts: 31807; Member since: Feb 05, 2011

The flock will be in an uproar on this one.

21. 99999

Posts: 142; Member since: Jul 25, 2017

The opposite is you are one off them , but an Apple one.

44. darkkjedii

Posts: 31807; Member since: Feb 05, 2011

Arte8800 still can't properly compose a sentence. You've been on this site since 2009, and have not learned a thing. What's this...your 50th account?

57. tedkord

Posts: 17532; Member since: Jun 17, 2009

There hasn't been much to learn here since Michael Heller left.

14. Tsepz_GP

Posts: 1227; Member since: Apr 12, 2012

Hey, where are all those "analysts" and their idiotic followers who claimed S8 sales were lower!? $3.7billion from Mobile division alone, its an awful day for the haters. What do the Samsung Haters like saying again? "Butt Hurt" they seem to know all about feeling that way. :'D

9. seedorf

Posts: 44; Member since: Feb 16, 2015

iphone 7 lags dont 4get.hypocrite

35. BeersAndTech

Posts: 95; Member since: Sep 28, 2015

S8 lags way more than an iPhone 7 tho. Only reason I kept mine is because I needed the amazing display. But, as a person who switched from an iPhone 7, S8 feels far laggier.

5. slow00

Posts: 97; Member since: Mar 08, 2017

thanks for the clarifications but i can read english. pls do you maths again for this quarter and come back to discuss....however i suggest you remove the apple reality distortion field glasses next time

2. slow00

Posts: 97; Member since: Mar 08, 2017

What??????...........No way the numbers are true. What we religiously being taught by Apple die hards for years in this site are the following: - Apple is accounting for at least 120% of the combined operating profits of the global smartphone market on a quarterly basis - No OEM makes money from Android. so Phonearena please check your sources again and modify the article accordingly asap, otherwise their illusions will get spoiled.

4. magnanimus

Posts: 566; Member since: Mar 29, 2013

This is not purely from smartphone sales. This is Samsung as a whole. Also, Apple DOES own a ridiculous percentage (90+) of the total profit from smartphone sales.

10. trojan_horse

Posts: 5868; Member since: May 06, 2016

"This is not purely from smartphone sales. This is Samsung as a whole" Really? Then why didn't we see the operating profits of Samsung Life Insurance, Samsung Heavy Industries, Samsung Everland, and etc...? Sit your ass down, clown... This is just Samsung Electronics (subsidiaries involved in pure tech).

12. piyath

Posts: 2445; Member since: Mar 23, 2012

No you dumb ass... This is Samsung as a whole.....lol Don't act like a 5 year old now. Apple has been doing this for decades while Samsung now only catching up to speed. Even though this quarter is successful I doubt Sammy will retain this profit margin because Apple, LG, Sharp, and many other display manufacturers are spending Billions of $$$ to develop their own AMOLED displays very very soon. APPLE chip orders will also mainly go to TSMC from next year on wards.

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