Samsung managed to do it again and after overcoming some difficulties last year, they seem to be on track for another highly successful financial quarter. The S. Korean company is now the most profitable technology firm in Q2 2017, leaving Apple in the second place, thanks to solid revenues from its chipset and display manufacturing arms.
According to a report by FnGuide Inc., Samsung Electronics’ operating profit could surge past KRW 15.5 trillion ($13.6 billion), which is an improvement compared to an earlier estimation of KRW 1.47 trillion from last month and KRW 13.7 trillion from three months earlier. The company was recently named among the top five influential Asian brands by Forbes. Now, it is being reported that the company could hit an estimated operating profit of $13.6 billion for the fourth quarter of this year.
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”
Note also that the demand for memory, processor, and storage chips is so high that many companies have reportedly made long-term supply contracts lasting up to six months!
Samsung has been investing heavily in semiconductor designing and manufacturing arms as well as in OLED display manufacturing units. The company is also betting big on virtual reality, IoT devices, connected homes, and connected automobiles. It recently ended Intel’s 24-year reign to become the largest chipmaker in the world.