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Samsung sees profits up by 72 percent

by on07 July 2017

Thanks for the memories

Samsung Electronics has said its second-quarter operating profit rose 72 percent from a year earlier to a new record.

Strong memory chip prices helped widen margins. The second quarter operating profit was $12.11 billion. Revenue likely rose 18 percent from last year.

The company said it would invest $18.6 billion to extend its lead in memory chips and next-generation displays.

Samsung did not elaborate on its April-June performance and will disclose detailed results at the end of July. Even so, analysts have tipped its chip division to propel the firm to record overall profit.

The boom in memory chips will continue to inflate margins for the rest of the year.

Analysts predict shortages for both DRAM and NAND chips to persist for the rest of this year due to limited supply growth and demand for more computing power on smartphones and servers, padding margins for memory makers.

Another profit driver has also emerged in the form of organic light-emitting diode (OLED) displays. Samsung has a stranglehold on the market for the bendy, next-generation screens.

On the mobile front, sales prospects for the Galaxy Note 8 will be closely watched in the third quarter. Samsung is preparing to unveil the handset in August.

Last modified on 07 July 2017
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