Online Broadband Guide
Online Broadband Guide


Samsung profit tops estimates bolstered by memory-chip demand

Samsung profit tops estimates bolstered by memory-chip demand

Analysts are expecting similar or lower profits in the second quarter, a result of slower growth in DRAM chip prices and increased marketing costs for the Galaxy S9 handsets. The firm expects operating profits of 15.6 trillion won (around $14.6 billion), marking a 57.6 percent increase from the same period a year ago.

Revenue for the quarter was tipped to rise 18.7 percent, Samsung said in a regulatory filing.

Korea exported more than $10 billion in semiconductors this March in its highest-ever monthly sales, thanks to steady global demand for computer chips as technologies such as artificial intelligence, big data and cloud storage advance.

Samsung's guidance report did not give specific details about the performance of the four divisions of the company - semiconductors, display, consumer electronics and IT and mobile communications.

Analysts said memory chips were still the main driver of Samsung's profits, making up about 75 percent of its operating income, despite fears over the possibility that the industry cycle may have peaked.

The prices of NAND chips commonly used in mobile devices began falling late previous year and analysts have been closely watching for signs of the peak in the DRAM price boom as well.

This is expected to slow in coming quarters though, as analysts expect the chip boom to wind down.

Rumours are now circulating that Samsung is already working on its next Galaxy S9 model, following a new benchmark result shared on the website Geekbench.

That was largely due to the company's new Galaxy S9 and S9+ smartphones, which has received positive market response after its release in late February.

"I think the administration is trying to put a brake on Samsung's no-union policy, which labor has long criticized", said Kim Tai-gi, an economics professor at Dankook University, referring to the labour-friendly government of President Moon Jae-in. She declined to comment further on the probe and had no immediate comment on whether a raid had taken place at the unit which carries out repairs for Samsung Electronics products.

follow

loading...

editors' picks

April 06, 2018
US February trade balance Dollars -57.6bln vs -56.8bln exp
The rise in imports was broad based, driven by a 15 percent rise in energy products to the highest level since late-2014. Improving global growth and a weaker dollar have been supporting overseas sales of American-made goods.

April 05, 2018
Dow plummets 500 points after China announces new tariffs
The biggest worry for investors is that an escalating trade war will derail a global economy that is largely growing in unison. Unlike Washington's list, which was filled with many obscure industrial items, China's list strikes at signature US exports.

April 05, 2018
Fighters start to quit last opposition pocket of Syria's Ghouta
In Iraq specifically, the removal of US troops opened a void for ISIS to swoop in, he says. Those remarks threw State Department officials off balance.

April 04, 2018
Schneiderman sues administration over census question
The lawsuit accuses the Trump administration of breaking with decades of practice in demanding to know citizenship status. The lawsuit aims to block the Trump administration from adding the last-minute citizenship question to the 2020 census.

April 04, 2018
United Kingdom manufacturing has a steady growth in March, reveals survey
The pound has gained more than 4 percent against the USA dollar since the end of 2017. Germany's IHS Markit/BME factory PMI dropped to 58.2 in March from 60.6 in February.

April 04, 2018
Trump's Caravan Tweet Draws Attention To Mexico's Migrant Policies
Manuel Padilla, chief of the border patrol's Rio Grande Valley sector, one of the busiest crossing points on the U.S. Trump keeps "blackmailing, offending and denigrating Mexico and Mexicans", he wrote on Twitter on Monday.

April 03, 2018
How Kate Middleton and Zara Tindall Styled Their Easter Sunday Maternity Looks
The 96-year-old Duke is said to be suffering from a hip problem, but he has been seen driving around the Windsor Estate last week. Arriving fashionably late Prince William , 35, and Duchess Kate arrived after the Queen joining her for the Sunday service.

April 02, 2018
Hopkins Sheriff's Office Investigating Bank Robbery
Through latent fingerprint analysis investigators were able to identify the man as 19-year-old Jermarin Smith. Thursday, a passerby called 911 to report a suspicious person entering the bank, according to Thomason.

April 01, 2018
Ancient footprints found in BC earliest known in North America
For the study, the researchers excavated intertidal beach sediments along the shoreline of Calvert Island, British Columbia. A team of scientists found 29 footprints in total on Calvert Island , which lies off Canada's West Coast.

March 29, 2018
Arnaud Beltrame: France bids farewell to heroic policeman
His coffin, draped in the tricolour, was escorted through the capital ahead of a state funeral with full military honours. French police officers and investigators are seen March 23 at a supermarket after a hostage situation in Trebes.