At the moment, all seem to be going well for Samsung Electronics as it announced a number of devices at the recently concluded IFA conference held in Berlin. The Korean giant isn’t just doing well with its product release, its finance is also blooming. It is estimated that Samsung Electronics would hit an operating profit of $13.6 billion in the fourth quarter of 2017. This feat is largely engineered by the chip manufacturing arm of the company whose revenues ensured that it leapfrogged Apple as the most profitable technology firm in the second quarter of 2017.
Considering assessments and contributions from 23 Korean firms, FnGuide Inc., has predicted that Samsung Electronics operating profit could rise above 15.5 trillion ($13.6 billion) which utterly surpasses the KRW 1.47 trillion estimate from last month as well as the KRW 13.7 trillion estimate from three months earlier.
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This estimated operating profit is as a result of the huge demand for high-end semiconductor chips, and Samsung Electronics is the hub of its production. In the second quarter, the company racked up KRW 14.7 trillion which was also as a result of its semiconductor business. These chips are currently scarce because many companies have signed long-term supply contracts.
Roh Geun-chang, an analyst at HMC Investment & Securities, said,
“judging by a rise in demand (for memory chips), Samsung operating profits could rise as high as 16.4 trillion won,”
Samsung has huge investments in semiconductor manufacturing with multimillion-dollar plants in Pyeongtaek, Texas and other locations both within and outside its home country, South Korea. In addition to chip manufacturing, it also has its sight on IoT devices and OLED display.