We are in full publication mode for quarterly results of all companies that integrate technology and telecommunications ecosystem. During these days we will get to know the figures from all of them, although now we are discussing about the Korean giant Samsung. The company closed the best profit-level quarter since 2013, mainly due to its memory division.
Samsung’s first quarter (Q1) financial results for 2017 are out. From January to March this year, Koreans have achieved an operating profit of 9.9 trillion Won or $8.75 billion. This is the best figure recorded in this magnitude since 2013 that demonstrates the strength of the firm in many of its business areas. This represents an increase of 48.3% over the same period of the previous year. In addition, revenues grew 2% to 50,500 trillion Won, about $45 billion.
The memory market shoots Samsung
This is the second best quarter of Samsung’s profit history and it’s all due to its memory chip business. Although many people automatically think of mobile phones or televisions, the fact remains that this is the most profitable part of the business for the Korean firm. To make matters worse, now we are at a time where demand has skyrocketed and Samsung is the leader in the DRAM and NAND market. This segment alone contributed two thirds of the profits with 6.320 trillion Won.
Samsung Q1 2017
The mobile telephony division posted 2.070 trillion Won, slightly less than last year due to several factors. First, there was no high-end launch this quarter (S8 sales will be counted in the next). Secondly, S7 prices have been steadily declining. However, if we count on having to forcibly withdraw Note 7 from the market then we cannot speak of the drop as too relevant.
The division of screens and televisions contributed to the cause with 1,300 million Won due to the increasing demand of LCD panels. In addition, Samsung expects to increase orders for OLED panels throughout the year, Apple being one of the potential customers with its new iPhone 8.
In relation to the second quarter, Samsung has anticipated that they expect to achieve continuing growth in several segments. Memory will again be the most beneficial market as they expect the release of S8 and its S8 + version to trigger the profit for the mobile phone division.