New article: SAMSUNG PULLS OUT OF NOTE7 DISASTER AS PROFIT ZOOMS read more at here http://www.spinonews.com/index.php/economic2/item/3263-samsung-pulls-out-of-note7-disaster-as-profit-zooms

Last year Samsung Electronics went through a bad phase when it had to recall about 3 million pieces of its flagship phone Galaxy Note7 on account of overheating and blasting batteries. But now it seems to have pulled it out of that phase bravely as it declared a growth of 48% in operating profits of the first quarter this year.

After Note7 disaster Samsung has not come up with any new flagship smartphone since last year. But now the company seems hopeful of pinning the high end smartphone market once again with its new Galaxy S8 and S8+, which is expected to be on shelves later this month.

It seems that company’s components business, consisting of display panels and memory chips is likely to have helped boost the company’s profit in the first quarter.

The South Korean company said Friday it expects its operating profit in the first quarter was 9.9 trillion won (US$8.8 billion), up 48 percent from 6.7 trillion won in the same period last year. Samsung said in its earnings guidance that it expects revenue will remain flat at around 50 trillion won for the quarter from 49.78 trillion won in the same quarter a year ago.

The final results for the quarter are expected later this month.

A turnaround at the company was already evident in the fourth quarter of 2016 when the company posted a 50 percent growth in operating profit to 9.22 trillion won on revenue of over 53 trillion won.

The company’s components business helped it in the fourth quarter as well. It reported in January that its fourth quarter earnings were driven by the components businesses, mainly its memory business and its display panel unit.

 

Samsung said its focus in 2017 in the components business was to boost profitability in DRAM and NAND, as it was seeing continuing growth in demand for these components for data center servers and mobile devices.