Samsung Electronics became the most profitable technology firm in Q2 2017, leapfrogging Apple, thanks to solid revenues from its chipset and display manufacturing arms. The company was recently named among the top five influential Asian brands by Forbes. Now, it is being reported that the company could hit an estimated operating profit of $13.6 billion for the fourth quarter of this year.
Samsung Electronics Q4 2017 Operating Profit Estimation
According to a report by FnGuide Inc., Samsung Electronics’ operating profit could surge past KRW 15.5 trillion ($13.6 billion), which is an improvement compared to an earlier estimation of KRW 1.47 trillion from last month and KRW 13.7 trillion from three months earlier. This new report was generated by taking assessments and inputs from 23 Korean brokerage firms.
This new number exceeds Samsung’s second-quarter operating profits of KRW 14.7 trillion. If the company’s operating profits for Q4 2017 meet market expectations, it will exceed the KRW 14.2 trillion figure that was being estimated for the quarter ending September. A higher operating profit estimation is due to the rising demand of semiconductor chips, and Samsung is one of the world’s largest chipmakers.
Roh Geun-chang, an analyst at HMC Investment & Securities, said, “judging by a rise in demand (for memory chips), Samsung operating profits could rise as high as 16.4 trillion won,” he claimed. The demand for memory, processor, and storage chips is so high that many companies have reportedly made long-term supply contracts lasting up to six months.
Samsung has been investing heavily in semiconductor designing and manufacturing arms as well as in OLED display manufacturing units. The company is also betting big on virtual reality, IoT devices, connected homes, and connected automobiles. It recently ended Intel’s 24-year reign to become the largest chipmaker in the world.