Samsung Predicts Record Q2 Profit Amid Strong Chip Demand

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The South Korean tech giant estimated its operating profit for the April to June period at 14 trillion won (US$12.1 billion), up from 8.14 trillion won a year earlier. That would represent a jump of 18 percent in revenues compared to the same period a year ago, and an increase of 72 percent for profits.

Its semiconductor division - which is enjoying an all-time-high demand for memory chips - likely contributed the lion's share, coupled with a recovered mobile division thanks to strong sales of the Galaxy S8 series.

The S8's performance has reassured investors whose nerves were shaken past year by the costly withdrawal of Samsung's premium Galaxy Note 7 due to fire-prone batteries.

South Korea's ruling party made a rare comment about Samsung Electronics Co.'s good second-quarter earnings Saturday, a gesture seen as a prod to get the world's largest manufacturer of smartphones to do more to revitalize the local economy.

"Samsung's big increase in sales has been driven by an fantastic rise in DRAM and NAND flash average selling prices", IC Insights said at the time. (NASDAQ:AAPL) as the most profitable smartphone company in Q2 2017.

Organic light-emitting diode panels were another major contributor. Samsung has a stranglehold on the market for the bendy, next-generation screens which are widely expected to be used for Apple's latest iPhones, due out by October.

Analysts expected the firm to continue to post strong earnings this year. He expects Samsung's third-quarter operating profit to exceed 15 trillion won.

Shares of Samsung Electronics closed 1.01 percent higher at 2,403,000 won Thursday. They have gained 30 percent so far this year on top of a 43 percent surge in 2016. In response to these market needs, Samsung, across both Samsung Electronics and Samsung Display, plans to reinforce its manufacturing capabilities by investing more than KRW 37 trillion in investments to its global production facilities.

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