The current quarter is expected to be a lucrative one for Samsung Electronics as the Seoul-based tech giant will likely post a 40-percent increase in operating profit compared to Q1 2016, South Korean analysts said on Wednesday. More specifically, Samsung will reportedly record approximately $8.14 billion in operating profit during Q1 2017. Despite the fact that the company's home appliance business will probably experience traditionally weaker sales, Samsung's semiconductor unit will ensure that the firm enjoys another quarter of strong financial performance, the report states. The chip-making division of Samsung has recently been recording extremely positive financial results due to the high demand on the market that consequently drove up prices. Apart from the semiconductor business, Samsung Display is also expected to help the company post an impressive increase in operating profit during the first quarter of the year, according to industry analyst Kim Dong-won.
Samsung's display and semiconductor units are expected to account for more than 70 percent of the company's operating profit during the current quarter. For comparison, the two divisions contributed to 53 percent of Samsung's operating profit in Q1 2016. While optimistic, this report isn't completely surprising in light of the fact that those two units are also responsible for Samsung's fantastic Q4 2016 financials that showed numerous positive figures despite the fact that the Seoul-based company lost billions of dollars due to the Galaxy Note 7 debacle. As Samsung continues to strengthen its position in the semiconductor and display panel markets, the company's earnings will also continue to rise, analysts believe. Finally, the value of Samsung's stock will almost certainly increase in the coming months seeing how the company recently introduced several new measures aimed at improving shareholder value amidst pressure from major investors.
Overall, even if the company's semiconductor and display units don't have a stellar second quarter of the year, Samsung will still likely continue posting impressive financial results in the coming months after its home appliance sales pick up and the firm's mobile division bounces back with the Galaxy S8 and the Galaxy S8 Plus. Samsung's upcoming pair of Android flagships is expected to be a huge commercial hit once it hits the market in April.