Samsung Boasts Record Profit From Chip Sales In Q4 2017

Samsung Logo 2018 AM AH 3

Samsung is boasting record profit from chip sales in the fourth quarter of 2017, noting that both its earnings and its operating profit have reached record high quarterly numbers, with the earnings amounting to 65.98 trillion won and the operating profit amounting to 15.15 trillion won. Samsung’s report mentions that semiconductor sales reached 21.1 trillion won, and it also highlights that chip sales were a driving factor in helping the company turn a huge profit, also stating that it expects 2018 to offer up strong chip sales as well. Its memory chips weren’t the only area where Samsung saw success. It also reported healthy sales from its flexible OLED panels, which reached a total quarterly sales of 11.18 trillion won.

Though Samsung’s top earner this past quarter were its processors, Samsung’s mobile business is likely the one that most consumers are currently familiar with thanks to its lineup of popular Android-based mobile devices like those in its Galaxy S and Galaxy Note lines. In regards to its mobile sales, Samsung says it expects the first quarter earnings from 2018 to be strong due to increased flagship product sales thanks to the upcoming launch of the Galaxy S9, though it doesn’t directly state the Galaxy S9 will be the cause of the earnings uptick. Something to keep in mind with this, though, is that Samsung’s Galaxy S9 has been rumored to launch on March 16th, which would still be within the first quarter of the year. This might point to Samsung’s referencing of the Galaxy S9 in regards to Q1 2018 flagship earnings increases as an indicator that it does plan on launching the Galaxy S9 in March on or around the rumored date.

In addition to a strong fourth quarter for profits, Samsung also had a strong year altogether, reporting an annual operating profit of 53.65 trillion won and an annual sales of 239.58 trillion won. Moving forward Samsung expects its chip business to remain strong but it also sees big opportunities in the software and connectivity sectors due to increased interest in the A.I. and IoT markets. To stay in line with these growing industry trends Samsung says it will look to “link various devices and services based on A.I. and IoT.”