Samsung’s Quarterly Forecast Suggests the Best Profits in Over Three Years
While some companies have been struggling financially for quite a bit now, Samsung has been able to hold strong over the last couple of years. The company’s mobile division went through its own rough patch a few years back, but was able to bounce back with the success of the Galaxy S6 and Galaxy S7. Many thought the company would post some financial losses due to the Galaxy Note 7 battery debacle, but other divisions within the company seem to have performed better than expected.
A refreshed focus on the Galaxy S7 was able to able to bring in some additional revenue for Samsung when we saw the company releasing additional color variants throughout the year. So naturally, Samsung would have likely been able to post even greater profits for Q1 of this year if the Galaxy Note 7 issue didn’t crop up, but thankfully it didn’t impact the company that much. The South Korean tech giant has just published their Q1 financial forecast and they’re expecting to see the best profits they’ve ever had in over 3 years.
This is on top of the political scandal that has engulfed the entire country of South Korea too. An issue that caused Samsung’s own Vice Chairman Jay Y. Lee to be arrested and he is currently facing charges for bribing their former president Park Geun-hye. The company has been able to push through and their forecast tells us that they’re expecting to post a $8.8 billion profit for the first quarter of this year. Not only is this huge for Samsung, but it’s also more than analysts expected them to bring in.
Analysts currently believe the main driver for profits this quarter was Samsung’s semiconductor business. Not only are they seeing success in their own Exynos SoC, but continued business from Qualcomm for the upcoming Snapdragon 835 SoC has also added to this increase in profits. Samsung will provide details about this report at the end of April.Source: Reuters