When Samsung made the impossible but correct call of pulling over 4 million Galaxy Note 7 units from circulation, canceling the production of many millions more, it was easy to predict the chaebol’s doom and gloom.
Naturally, a depressing quarterly financial report followed, as well as several months of general high-end smartphone demand apathy, not to mention the inevitable brand damage that analysts pretty much expected to last forever.
But Samsung had an ace, nay, quad aces tucked neatly up its sleeve, and so, even before the Galaxy S8 commercially rolled out, company profits surged to near-record all-time highs. Thus, it really shouldn’t come as a surprise that Q2 numbers are now officially forecasted to reach new historical heights.
Unveiled towards the end of March, the GS8 duo was on store shelves around the world for a big chunk of the April – June timeframe, no doubt contributing enormously to estimated consolidated sales of approximately 60 trillion Korean won, and 14 trillion won operating profit.
Still, just like during Q1 2017, it was probably the Asian tech giant’s extensive semiconductor business that yielded the highest net earnings, followed closely by an ever-expanding display panel division.
In addition to growing demand for DRAM and NAND chips, as well as OLED screens, from a broad roster of high-profile clients and partners, Apple included, the profitability of said components was substantially improved as the competition just can’t keep up with Samsung’s innovations and investments.
Hence, not only is that 14 trillion won score 40 percent higher than the Q1 profit tally and 72 percent over the Q2 2016 mark, also surpassing Apple’s bottom line between January and March 2017. Converted in familiar currency, it tops $12 billion, while Apple earned a little over $11B this previous quarter, likely looking at around $10.5 billion Q2 2017 profit. Now that’s quite an achievement for the long-time global leader of smartphone volumes.