Samsung's chips and phones have contributed to strong Q1 earnings according to the company's latest results. For the first quarter period of the year which ended in March, Samsung has recorded an excellent quarterly operating profit of 9.9 trillion won which is about $8.75 Billion USD. Samsung states that this is their highest quarterly profit since 2013 and that they expect this momentum to continue in the remaining quarters for the year. Much of the second quarter's profit is likely to come from the pre-orders and sales of Samsung's flagship Galaxy S8 and Galaxy S8 Plus, both of which are already doing better than analysts have expected, though the Galaxy S8 Plus is already believed to outpace the slightly smaller Galaxy S8.
In fact, the Galaxy S8 and Galaxy S8 Plus pre-orders are doing better than those of the Galaxy S7 and Galaxy S7 Edge that launched last year with Samsung recording a 30 percent increase in pre-order sales for the two new phones, so things are already looking promising for Samsung moving forward.
Samsung's Q1 earnings are due in part to sales of smartphones, but memory chips are a larger portion of that profit because demand of memory chips had increased, allowing Samsung as the largest chip maker to cash in. For its part, Samsung's memory chip business brought in 6.3 trillion won in operating profit comprised of both DRAM and NAND flash memory chips. Operating profit is not the only area where Samsung saw positive increases. Samsung's first quarter revenue was also up as the company recorded a 2 percent lift which totaled about 50.5 trillion won, while also completing a buyback of shares that was valued at 2.3 trillion won. Samsung's success with smartphones has seen its fair share of ups and downs but that hasn't stopped the company from continuing to garner interest from consumers, as they were recently reported to be the most popular smartphone brand of 2016, an accomplishment that is likely to carry over to this year too, given the popularity of the Galaxy S8 and Galaxy S8 Plus. While Samsung has had a good quarter and they're expecting to have one that's just as good or better for Q2, it's possible that their Q2 profits could be affected by the issues the Galaxy S8 and Galaxy S8 Plus have been having with the red tint and the DQA issue, a problem which Samsung has already reportedly put out a patch for.