Samsung Hits Record Profit In Q3 2017, Chip Demand Soars

Advertisement
Advertisement

Samsung had released its Q3 earnings guidance a while back, and it seemed like Samsung is looking at yet another extremely profitable quarter, well, it turns out those predictions were spot on, as Samsung has just released its financial results for Q3 2017. Samsung's revenue for the third quarter of this year was KRW 62.05 trillion ($55.5 billion), which is a considerable increase if we compared it to the same period last year, as Samsung's revenue in Q3 2016 was KRW 14.23 trillion ($12.7 billion) lower in comparison.

Having said that, Samsung also reported an operating profit of KRW 14.53 trillion ($13 billion), which is an increase of KRW 9.33 trillion ($8.3 billion) YoY (Year-on-Year). Now, it seems like chipset sales were the main driving point behind such high-profit numbers for Samsung. Samsung actually singled out chipsets, along with mobile devices and servers as main reasons for such high-profit margins, and it's also worth noting that this is Samsung's highest operating profit ever, as far as quarterly profits are concerned. The company's semiconductor division actually accounted for two-thirds of the company's overall operating profit, which is quite staggering. The company's semiconductor division has seen an increase of 146.7 percent YoY (Year-on-Year). The company said that its Galaxy Note 8 and Galaxy J series of smartphones boosted the company's mobile division, even though its earnings declined QoQ (Quarter-on-Quarter) due to 'higher sales proportion of mass-market smartphones.

Now, as far as the company's display panel segment is concerned, Samsung has seen a decline in that sector as well, despite the fact its flexible OLED panel business expanded. Samsung's TV business has seen 'significant improvements' in QoQ earnings, as the company's premium TV offerings were in high demand, sales for such devices increased, devices like QLED TVs. YoY earnings, however, were a bit lower in this segment. Based on these numbers, Samsung is well on its way for a record full-year profit, though it remains to be seen what will happen in the fourth quarter of this year, of course. The company is, however, expecting tight supply for its chipsets, mainly due to the demand, so it will be interesting to see whether the company can beat its Q3 results in the next quarter.

Advertisement