Home / Android Tips / Samsung breaks quarterly profit records yet again, mostly thanks to chips and high-end phones

Samsung breaks quarterly profit records yet again, mostly thanks to chips and high-end phones

It’s no huge trick that Samsung had an excellent year following 2016’s Note 7 ordeal, developing into gold whatever the chaebol touched, from memory chipsets to mobile processors, OLED panels and, obviously, own-brand high-end mobile phones.

2018 naturally began on a likewise high note for the world’s biggest mobile phone supplier, top TELEVISION producer and leading chipmaker, although Samsung’s brand-new record-setting quarterly earnings might have been even greater.

Paradoxically, the blame lies with Apple, as Samsung’s still-impressive Show Panel service suffered due to “sluggish need for versatile” OLED screens in between January and March. That’s the kind of display screen utilized on the iPhone X, makinged Samsung a lot of loan throughout Q4 2017 prior to its mainstream appeal fell off a cliff.

Looking ahead, OLED cost decreases (no, not those sort of decreases) and enhanced production performance will have to protect 2nd quarter success, while need for versatile panels need to rebound in the year’s 2nd half, most likely as Apple prepares to increase next-gen iPhone production.

As far as Samsung’s constantly effective mobile department goes, we will not act shocked to hear the early Galaxy S9/S9+ release and “strong” GS8 sales yielded a huge Q1 2018 earnings. We’re talking no less than KRW 3.77 trillion (around $3.5 billion) in divisional gains, up from KRW 2.07 and 2.42 trillion throughout Q1 and Q4 2017 respectively.

However the business’s mobile phone revenues are anticipated to decrease over the next quarter, as sales of “flagship designs” will likely “decrease”, while marketing costs will increase in order to aim to “deal with the circumstance.”

It definitely feels a little early for the GS9 duo to lose traction, although Samsung firmly insists the phones themselves are not the issue, however rather “increasing competitors in the high-end section.”

On the other hand, the current quarter’s huge dollars really originated from semiconductors, which produced 3 times as much operating earnings as the mobile service on a little lower sales. That’s right, Samsung’s chips published an astonishing first-quarter gain of KRW 11.55 trillion ($107 billion) on simply KRW 20.78 trillion ($193 billion) in earnings.

All in all, Samsung made an all-time high KRW 15.64 trillion ($145 billion) operating earnings, regardless of reporting combined profits of KRW 60.56 trillion ($562 billion), below KRW 65.89 trillion in Q42017 Discuss a well-oiled lucrative device.

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