Samsung Q2 chip sales are $15.7bn

Posted July 27, 2017

The company reported bumper quarterly earnings on Thursday, putting Samsung on track to record ahigher operating profit for the period than Apple.

Samsung Electronics announced record profits for the quarter ending June on Thursday.

Samsung also said its net profit soared 89 percent year-on-year to reach 11 trillion won ($9.88 billion) - a trillion won higher than estimated by Yonhap Infomax.

However, Greg Roh, an analyst at HMC Investment Securities, told AFP: "Samsung has surpassed its rivals for now but Apple usually sees little fluctuation in its profits whereas Samsung's profits fluctuate largely on memory chip prices". The company's trading business also raised 46 billion won in operating income, a whopping 318 percent surge from a year ago.

Several currency traders in Seoul said they suspected that foreign exchange authorities purchased dollars to temper the won's gains ahead of the closing bell.

Samsung has been trying to overcome an embarrassing recall previous year of its flagship Galaxy Note 7 smartphone over exploding batteries, which cost it billions of dollars and dealt a blow to its reputation. The company said that growth is slowing for products used in smartphones, but remains solid for servers.

In May, Samsung said it had sold over 5 million Galaxy S8 and S8 Plus units.

Lee is facing charges of bribery and corruption related to a far-reaching scandal that resulted in the ouster of former South Korean President Park Geun-hye earlier this year. Samsung has said it plans to spend $18 billion in the next four years to expand memory chip production capacity at its South Korean plants.

Samsung's growth this quarter was largely down to the stunning success of its semiconductor business, which is experiencing an unprecedented boom on the back of strong demand for server memory chips to store, analyze and process data in data centers.

"The increase in sales of iPhones will weaken profit in the mobile business but Samsung will supply more semiconductors and display panels to Apple and improve profit in the components part", he added.