Samsung hasn’t revealed its earnings report for the first quarter of this year yet but the market expects the results to exceed expectations. Even though the mobile division may not contribute as much as it would have wanted, Samsung’s Q1 2017 is likely going to be salvaged by its lucrative chip business which continues to see tremendous growth. However, things might be a bit different in the second quarter.
Samsung last posted a record quarterly profit back in the third quarter of 2013. It earned 10.1 trillion won and the Galaxy S4 played a major role in that. With the Galaxy S8 looking to dominate the smartphone market this year, analysts at IBK Invest & Securities believe that the Galaxy S8 is going to help Samsung boost operating profits in Q2 2017 by 49 percent. They expect it to reach 12.1 trillion won or $11 billion.
The company’s annual operating profit is expected to rise by 69 percent this year due to strong demand for 3D NAND flash memory and OLED panels. Samsung has reportedly inked contracts worth billions of dollars with Apple to supply it with OLED displays for the next iPhone.
Samsung also expects its new flagship smartphone to perform well. It feels that sales will outperform the Galaxy S7 which set a new internal record for sales last year. Samsung has doubled the initial stock of the Galaxy S8 compared to the Galaxy S7 to ensure that there are no supply issues at launch.