Samsung has blown away expectations and revealed record-breaking earnings after a year of exploding Note 7 smartphones and corruption scandals. The South-Korean company posted revenue of $54.7 billion for the quarter, with an operating profit of $12.67 billion.
Compared to last year, that's a 19.2% increase in revenue and a huge 72.7% increase in operating profit. Analysts predict that it will become the most profitable tech company in the world this quarter, with Apple predicted a $10.55 billion.
Much of the increase was thanks to the company's semiconductor business, which sat at $7.1 billion in profit (8.03 trillion won). The huge increase from last year's 2.64 trillion won last year is likely due to rising demand in SSD memory
The World's Biggest Chipmaker
Analysts say the report has also put Samsung on track to become the world's biggest chipmaker, ahead of the long-standing Intel, who is projected for $14.4 billion revenue. Speaking to The Financial Times, SK Securities analyst Kim Young-woo said:
“Samsung is likely to maintain its market leadership over Intel from this year onward on the back of ever-growing enterprise demand for data servers, artificial intelligence and the internet of things, etc.”
Of course, Samsung's mobile division also made an impact and seems to be back on track. Sales of the Samsung Galaxy S8 propelled an operating profit of 4.1 trillion won. It aims to “sustain the strong sales momentum of premium smartphones through the release of a new Galaxy Note smartphone.”
The company has surpassed estimations and its own expectations. Stock prices remain steady, reaching close to record highs at points on Thursday.