​Samsung expects record $12b Q2 profit thanks to chips, Galaxy S8

Samsung Electronics is expecting an operating profit of 14 trillion won (around $12.1 billion) for the second quarter of 2017, its highest ever for a quarter.
Written by Cho Mu-Hyun, Contributing Writer

Samsung Electronics expects an operating profit of 14 trillion won and revenues of 60 trillion won for the second quarter of 2017, the company has said in its preliminary earnings guidance.

Operating profits and revenue rose 41.41 percent and 18.69 percent from the previous quarter, and rose 71.99 percent and 17.7 percent from the same period a year ago.

Both are the company's highest ever for a quarter. Samsung's previous highest was 10.1 trillion won for the third quarter of 2013, backed by strong sales of the Galaxy S4.

The profits indicate strong performances from all its divisions.

Its semiconductor division -- which is enjoying an all-time-high demand for memory chips -- likely contributed the lion's share, coupled with a recovered mobile division thanks to strong sales of the Galaxy S8 series. Expanded demand for its OLED displays contributed also.

The company's S8 series was well-received globally and broke pre-order records in South Korea.

Memory chip profits are likely to grow even further as the firm increases its production capacity, having begun operations of a new plant in Pyeongtaek to meet demand.

In the first quarter this year, Samsung posted 9.9 trillion won profits, now it's third-highest ever, thanks to record profits from its semiconductor business.

Precise contributions of each division will be revealed in the company's official guidance at the end of the month.

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