Samsung Electronics tips record second-quarter profit as memory prices surge
SEOUL (Reuters) – Technology giant Samsung Electronics Co Ltd said a record quarterly operating profit from April to June, boosted by a memory boom, analysts say, will continue to spread margins for the rest of 2017.
Apple Inc.’s smartphone competitor and chip leader of world memory reported that operating profit for the second quarter probably represented 14 trillion gains ($ 12.11 billion), compared with the average of 19, 1,000 earned 19 estimates in A Thomson Reuters poll.
Revenue probably rose 18 percent from a year earlier to 60 trillion won, also a quarterly record, compared with analysts’ forecast of 59 trillion won. The South Korean company did not give more details and publish detailed results at the end of July.
Robust estimates reinforce expectations of the best gains that have been made for Samsung this year, driven by a so-called super-cycle memory chip.
Analysts predict that the shortage of DRAM and NAND chips will persist for the remainder of this year due to limited supply growth and demand for more computing power in smartphones and servers, filling margins memory manufacturers.
Another advantage of the engine has also emerged as light emitters of organic diode displays (OLED). Samsung has a range in the market for hot and next generation screens that are widely used for the latest Apple iPhone, which is expected for October.
“In July, DRAM prices will resume, while, since mid-August, emerging OLED panels for Apple,” said Greg Roh, an investment analyst at HMC. Operating profit for the third quarter of Samsung is expected to exceed 15 trillion won.
Samsung shares fell 0.3 percent in early trading on Friday, compared with a 0.2 percent drop for the broader market as strong earnings outlooks are listed below. Inventories increased more than 30 percent this year and are close to their all-time highs.
While analysts believe that the memory chip industry will make a super-cycle for several years as a result of consolidation services and new application such as cloud computing and artificial intelligence, its growth rate can delay the jump Planned for this year.
Samsung said on Tuesday it will invest 18.6 billion to expand its leadership in next-generation memory chips and displays, a move that could alleviate shareholder concerns that the decisions were in the background while Vice President Jay Y. Lee’s fight against corruption charges in court.
On the mobile front, sales prospects for Galaxy Note 8 will be painstakingly analyzed in the third quarter, after its predecessor was recalled last year because of battery-prone fires.
Samsung is preparing to unveil the handset in August, it told Reuters Reuters, indicating the willingness of the company to continue with the qualifying brand.