Samsung Electronics’ Profit Up by 58 Percent on Strong Memory Chip Sales

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Photo by: Oskar Alexanderson via Wikimedia Commons

 

Samsung Electronics has recently announced a 58 percent increase in profit, due to the demand of its memory chips and latest smartphone, reported Financial Times.

The technology giant’s operating profit rose to $14.7 billion or 15.6 trillion won in the first three months of 2018 based on the preliminary results that were released Friday from the South-Korean based firm.

The company’s strong momentum in the first-quarter, which includes the sales of Galaxy S9 phone that were launched in February, may relieve the concerns about Samsung’s display business after Apple has sold iPhone X handsets with displays made by Samsung. 

The demand for memory chips used in servers and phones may also continue to keep the electronics company on track. Samsung even surpassed Intel last year as the world’s biggest chipmaker by revenue.

Analysts have further claimed that memory chips remained the top driver of Samsung’s earnings, comprising for about 75 percent of the company’s operating profit, added Financial Times.

Financial investment company SK Securities analyst’s Kim Young-woo said, “Semiconductor momentum is likely to slow next year.” The analyst adds that this may be due to the demand from major clients like Facebook and Apple may be weaker. Young-woo continued that Samsung may also cut its capital expenditure for memory chips in 2019.