Samsung and LG expect good first quarter figures despite business drags
The first calendar quarter wrapped up last week and, as Korea’s two main chaebols tell it, it has been a good winter.
Reuters reports that Samsung is looking forward to gross revenues of ₩60 trillion ($56.2 billion) for the period, even as its semiconductor business is cooling off after a hot streak. Forecasts from Samsung and competitor Apple are looking at $14.7 billion in profits, beating the street consensus by $1.1 billion.
Investors are somewhat worried as memory chip prices have started sliding, but they expect 2018 to be an overall “strong” year. Meanwhile, the Galaxy S9 launch has been able to attract buyers to the Galaxy S8 and other second-tier mobile products, though analysts are looking to Xiaomi as one of the bigger threats coming up.
Meanwhile, LG has announced that first quarter profits of about $1 billion will be the highest logged since the second quarter of 2009. The manufacturer has been able to stake out a premium position in home appliances and OLED televisions with its Signature lineup. Meanwhile, the mobile division is expected to have rounded a full year of losses.