Samsung, the South Korean giant, this week reported record earnings of the quarter. This placed the tech major on course to go beyond Apple as the most profitable tech firm in the world. This comes in a time when the company looks to shift from a past bribery scandal and recall debacle of the last year.
The company claimed that huge sales of its latest Galaxy S8 handsets and need for its memory chips were the reason for the jump in April–June quarter. It forecasted another hit report for the present quarter. It claimed that working profit jumped to 72.9% to 14.07 Trillion Won ($12.6 billion) from the last year, compared with consensus predictions of $10.6 Billion for the U.S. major Apple.
On the other hand, an industry analyst, Greg Roh, told the media in an interview, “Samsung has exceeded its competitors for now but Apple typically witnesses little variation in its profits while profits of Samsung vary largely on prices of memory chip.” The top maker of memory chips and smartphones in the world also claimed that overall profit jumped to 11.05 Trillion Won around 90%, its best result of the quarter in 5 Years.
“The S8 has certainly assisted get the company back onto its feet, expectantly placing the Note7 disaster behind it,” a technology industry analyst, Bryan Ma, said to the media before the announcement in a statement. “But we also have to remember that a lot of momentum of Samsung is from displays and memory. So it is not only the S8,” he further claimed to the media.
Samsung has been making an effort to conquer an awkward recall last year of its flagship smartphone, Galaxy Note 7, due to blasting batteries. This cost the company a fortune and gave a blow to its status. The company has also been pounded by a scandal that has witnessed Lee Jae-Yong, the Vice Chairman and heir of the company, charged in association with the extensive corruption scandal that brought down Park Geun-Hye, the President of South Korea.
Profit breakdown displayed that the semiconductor business of the firm collected in 8.03 Trillion Won in working profit in the quarter two, up 204% as compared to last year. Samsung offers its chips to other firms comprising Apple. “The components trade drove noteworthy growth of earnings. Thanks mainly to sturdy memory need for high-density SSDs and DRAMs for servers,” the company claimed.