Samsung posts another record profit thanks to its chips business


Samsung posted another record quarter, and it once more has its parts business to thank for extra stellar effects.

The Korea tech large shrugged off scandals, which come with a prison sentence for its de issue chief and final yr’s Observe 7 saga, to record a 14.53 trillion received ($12.92 billion) profit for the hot Q3 2017 length.

Earnings got here in at 62.05 trillion received ($55.18 billion), up 30 p.c year-on-year and a record for a 3rd quarter, in no small phase due to Samsung’s parts business, which gives chips for a spread of client electronics together with smartphones from different companies.

Samsung sells extra telephones each and every yr than another corporate in the world, however its semiconductor business has historically been its best possible performer and that was once as soon as the case in Q3. Total income from the unit was once up 51 p.c to achieve 19.nine trillion received ($17.7 billion), with its profit up shut to three-fold to achieve nine.96 trillion received, $eight.86 billion.

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The Samsung cellular business were given an build up in general gross sales and income year-on-year, principally on account of the disastrous Observe 7 recall, however it was once down at the earlier quarter’s metrics. The corporate put that down to consumers favoring mid- and low-end units with smaller margins.

Taking a look ahead, it stated it intends to build up the point of interest on higher-end units as we input the vacation season when call for will increase, however “intensifying competition” — i.e. the iPhone X release — and the emerging value of fabrics stand out as key demanding situations.

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The corporate stated it expects its monetary efficiency to proceed to develop in 2018 “primarily from the component businesses, as conditions in the memory market are likely to remain favorable and the company expects increased sales of flexible OLED panels.”

Samsung additionally introduced 3 new leaders. The corporate makes use of a co-CEO construction that sees the heads of its 3 core divisions — client electronics, IT and cellular communications and tool answers — lead the business and that’s the place the brand new hires, who’re all Samsung veterans who’ve been promoted, will take a seat.

Featured Symbol: Bloomberg/Contributor/Getty Pictures