Samsung Electronics has completed the second business quarter 2017 with a record result. Compared to the previous year, sales rose by almost 20 per cent, the bottom line being a net gain of almost 89 per cent. Samsung’s segment for memory and display solutions has just exploded.
In the second quarter of 2017, which closed on June 30, Samsung Electronics reported revenue of KRW 61 billion (€ 46.78 billion), an increase of 19.7 percent over the same period last year. In the same period, operating profit increased from 8.14 to KRW 14.07 trillion (+ 73%), while the bottom line was KRW (8.47 billion euros) +89%).
Smartphone division is preparing for Galaxy Note 8 launch
The IM division, which also includes smartphone sales, accounts for the largest share of sales. Here, sales are 30.06 to KRK 26.56 trillion compared to the previous year. Consumer electronics (CE) and televisions, on the other hand, have slightly declined, but at 10.92 to almost 11.04 trillion KRW.
According to Samsung, sales and operating profit of the IM division were driven mainly by the good sales figures of the Galaxy S8 (test). On the other hand, the delivery figures for devices of the lower and middle classes have declined. The operating profit of the IM division is even slightly declining by 4.06 to 4.96 trillion KRW.
For the third quarter Samsung expects a still solid demand for the Galaxy S8 and S8 + as well as a new upturn by the Galaxy Note 8. According to Samsung, the operating profit is expected to go further, however, since the launch of the Galaxy Note 8 brings high marketing costs , The performance will take place in New York on August 23rd.
DRAM and NAND demand is much higher than the supply
However, the segment of the Device Solutions (DS), which is also counted as Semiconductor and the sub-division for storage solutions, has exploded. Sales rose from KRK 18.73 to KRK 25.25 trillion, while the operating profit rose by a whopping 247 per cent from KRW 2.79 to KR9 9.99 trillion. In the current quarterly report Samsung Electronic speaks of a strong demand for DRAM and SSDs, the demand far exceeds the offer. DRAM products with high storage density, LPDDR4x as well as enterprise SSDs over 4 TB are strongly coming. In the Semiconductor division, on the other hand, the business with application processors (AP / Exynos) is doing very well. The 10-nm production is in full swing, explains Samsung.