Samsung boosts profit by 48 percent in the first quarter

Samsung presented balance sheet for the first quarter of 2017 . As expected, the Korean company increased its operating profit by 48 percent to 9.9 trillion won (8 billion euros). Sales increased, however, only slightly by 1.5 percent to 50.55 trillion won (40.9 billion euros). The Semiconductor Division, as well as the display business in the first place are responsible for the good result.

 Samsung (image: Samsung) sales of Samsung’s Mobile Division shrank, however, by”a decline in the sales of flagship products”as reported by the company. 27.6 trillion won are now 23.5 trillion won (19 billion euros) in the same period of last year, which corresponds to a decline of almost 15 percent. Operating profit declined 47 percent to 2.07 trillion won (1.7 billion euros). Samsung justifies this decline with discounts for the S7 of the Galaxy and the Galaxy S7 edge.

in the current second quarter Galaxy S8 and Galaxy S8 + to make again for increasing revenue – despite weak forecasts for the Smartphonemarkt. The demand for both units was “robust”. As waning interest in smartphones in middle and lower prices was overall stagnant sales figures are to be expected.

the semiconductor business washed 15,66 trillion won (up 40 percent) in Samsung’s cash. The operational income increased by almost 140 percent to 6.31 trillion won. With the sale of display panels, Samsung implemented 7.29 trillion won (up 21 percent), which left 1.3 trillion won as operating profit. In the first quarter of 2016, display panels had provided for a deficit of 270 billion won.

as early as the first quarter should also in the second quarter 2017 Server SSDs and 3D-NAND-Flash-Speicher the Semiconductor Division to strengthen a high demand. The display Division’s profitability improved, however, due to a lower rejection rate in the production of OLED panels, as well as a greater need for flexible displays. According to Samsung, but also large LCD-UHD panels drove the operational profit in the height.

the consumer segment continues to be the business area with the lowest profitability. 10.34 trillion won sales yielded only a profit of 380 billion won. While revenue increased slightly, shrank the output by 24 percent. Now, Samsung wants to reverse this trend through a stronger focus on premium products.

Samsung wants to complete fiscal year 2017 with sales growth. This to rising sales figures for OLED displays – a potential new customer is Apple -, the Galaxy S8 and S8 + as well as a “new flagship Smartphone in the second half of the year”. This it could be rated 7 a successor of the Galaxy, that had to take Samsung because of massive battery last autumn from the trade.

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