Samsung's profit may top Apple's for the first time ever

Posted July 27, 2017

Samsung C&T on Wednesday said in its regulatory filing that it posted 255 billion won ($227.5 million) in operating profit in the second quarter ended June, up 44 percent from the same period previous year.

The result beat expectations.

"We think more than KRW 15 trillion (in third-quarter profit) is more than possible", said analyst Greg Roh at HMC Investment & Securities.

Revenue increased 19.76 percent from a year earlier to 61 trillion won in the second quarter, and net income soared 89.04 percent to 11.05 trillion won.

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Samsung, the world's largest maker of memory chips and smartphones, probably surpassed Intel's semiconductor revenue during the last quarter and outstripped Apple in quarterly earnings for the first time, if analysts' forecasts turn out to be correct.

The South Korean won finished at a four-month high on Thursday as the dollar sagged after Federal Reserve seemed less confident about raising interest rates due to sluggish US inflation. Its forecast for Q2 was $14.4 billion.

It marks the highest quarterly operating profit ever posted by the tech giant.

South Korean shares also ended stronger, riding a global rally in riskier assets.

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Increased uses of connected devices and mobile data have created strong demand for server memory to store, analyse and process data in data centres.

Samsung Electronics said it expected the memory chip boom to continue in the current quarter. Operating profit at the division fell to KRW 4.06 trillion from KRW 4.32 trillion a year ago. Less than a year ago, the company's fire-prone Note 7 had to be recalled, costing the company more than $5 billion.

SK hynix, a major chipmaker, advanced 2.4 percent to 68,400 won, but Samsung Electronics actually edged down 0.08 percent to end at 2,490,000 won, as investors opted to cash in profits, according to analysts.

Looking ahead, Samsung said its third quarter profit may decline as its upcoming launch of the latest iteration of the Galaxy Note series would boost marketing expenses. Ongoing projects such as the construction of an airport in Singapore, a thoroughfare in Australia and a semiconductor facility in Korea have helped prop up the unit's operating profit.

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