Samsung Q2 Profits To Jump By 72%

samsung-q2

Samsung Electronics is expected to exceed Apple’s quarterly operating profit for the first time during its second-quarter earnings call. According to reports, the company’s Galaxy S8 flagship smartphone attributed strong profits and sales for the company. Samsung is now expected to deliver a second-quarter operating profit 72% higher than Apple for the same quarter.

The company announced recently that their second quarter operating profit might come in at $12.11 billion or 14 trillion won. Consensus analysts estimates were at around 13.1 trillion won in operating profits for the second quarter. On the other hand, Apple is expecting around $10.49 billion in operating profits on a revenue of $44.9 billion. Samsung is set to deliver a revenue of 58.79 trillion Korean won. This would be around a 63-72% increase on a year-on-year basis.

Aside from their booming revenue coming from their flagship S8 smartphones, the company’s semiconductor business is also being expanded by around $18 billion.  The company will be releasing other information such as the individual earnings and net income of their various business units later this month tentatively.

Samsung experienced huge losses last year by up to 9.2 trillion won after the company experienced a massive blow due to the Galaxy Note 7 smartphone issue specifically with their batteries exploding and catching on fire. The company’s troubles over the Galaxy Note 7 lasted for more than a month as it struggled to replace and recall the said units.

The company is also facing leadership issues as its Chairman Lee Kun-hee is under hospitalization due to a heart attack, Lee Jae-yong which happens to be the heir for the South Korean conglomerate was placed under custody months ago due to his possible involvement in former President Park Geun-hye’s corruption scandal.

Despite this, the company earned around 9.2 trillion won during the last quarter last year after the company received a growing demand for their semiconductors. It also surpassed its previous profits from its chip-making division from 6.31 million in the first quarter to 7 trillion by the second quarter.

For their upcoming earnings report, the company is also expected to forecast a high demand for their OLED displays and their Galaxy S8 smartphones which has already sent their revenue soaring since its release. According to analyst estimates, the Galaxy S8 devices were able to contribute 3.5 trillion won to their smartphone unit alone. Currently, more than 5 million galaxy S8 devices has reportedly been sold all over the world just a month after its release last April and twenty million at the moment. The markets would also be watching closely at the release of the Galaxy Note 8. The unit is expected to be unveiled next month according to various sources.

Despite the positive S8 sales and the rising demand for its memory chip business amongst many others, Samsung shares were mostly down during the past couple of sessions and was down by 0.3% during Friday’s early trading. However, the stock has risen by 30% this year and is set to hit new highs soon.

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