Things may not be looking good for Samsung’s top management but these troubles are not likely to have an impact on its business in the short term. This is why analysts who cover the company are of the view that it’s going to showcase robust growth in the first quarter of this year. According to a forecast shared with investors by KB Investment and Securities, Samsung’s Q1 2017 operating profit is expected to jump 40 percent year-over-year to 9.3 trillion won or $8.14 billion.
It was previously estimated that the first quarter operating profit would fall slightly due to the low season that’s normally seen this time of the year. However, analysts are of the view that the strong prices of semiconductors and display products will help push Samsung’s quarterly profits higher. As some of you might already be aware, semiconductors and display products are two of Samsung Electronics’ biggest cash cows.
It’s estimated that the company’s semiconductors and display divisions will contribute to 71 percent of the higher operating profit, up from 53 percent during the same time last year. The mobile division is expected to show improvement as well but the true financial impact of the Galaxy S8 will not be properly visible until the second quarter of this year considering that it will arrive towards the very end of Q1 2017.