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Samsung rides surging chip demand to record quarterly profit

Bloomberg Published on Fri, Jul 07, 2017 / 12:05 PM GMT+8

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(July 7): Samsung Electronics Co. topped analyst estimates with its best-ever operating profit as global demand for semiconductors remained strong and the new Galaxy S8 flagship smartphone won over customers.

Operating income rose to 14 trillion won ($16.6 billion) in the three months ended June, the Suwon, South Korea-based company said in preliminary results released Friday. That compares with the 13 trillion-won average of analysts’ estimates compiled by Bloomberg. Revenue rose to 60 trillion won, compared with the 58.4 trillion won projected.

The world’s largest maker of phones and memory chips is counting on the Galaxy S8 to repair its reputation and regain ground lost to Apple Inc. and Chinese rivals following the demise of the Note 7 device last year. Samsung’s results, which include the first full quarter of sales form the marquee smartphone, shows it’s continuing to benefit from higher prices for the memory chips that go into mobiles and computers.

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Samsung rides surging chip demand to record quarterly profit