Samsung has released their earnings guidance for the second quarter of 2017 and things are looking really good for the company. There is a lot of interest in what the impact of the Galaxy S8 and Galaxy S8+ has been, but we will have to wait a bit longer for detailed information on the results of particular business units. For now we have unaudited total sales and profit numbers and both of them are record-setting for a single quarter. Samsung indicates they expect 14 Trillion KRW ($12 Billion USD) in profit and 60 Trillion KRW ($52 Billion USD) in sales.
For comparison, for Q2 last year Samsung reported 8 Trillion KRW ($6.9 Billion USD) in profit and almost 51 Trillion KRW ($44 Billion USD) in sales. That is a whopping 74% improvement in profit for the company year-over-year. The gains are impressive even from just Q1 of 2017 when profit was 9.9 Trillion KRW ($8.5 Billion USD) and revenues were 50.5 Trillion KRW ($43 Billion USD), meaning Samsung saw profits jump 41% quarter to quarter.
Although Samsung’s new smartphones likely had a nice, positive impact on the company’s bottom line, the bulk of the growth probably came from other places. In particular, analysts think Samsung’s semiconductor and display businesses were probably big drivers of the gains as the markets continue to demand more and more flash storage.
Looking ahead things should continue to be rosy for Samsung thanks to a seemingly unlikely source, Apple. As Apple moves to production and release of their next round of smartphones, notably the iPhone 8, Samsung is poised to reap a windfall as the supplier for the OLED displays that Apple is reportedly planning to switch to for the next generation device.