Samsung announces record profit, set to beat Apple despite setbacks

Image by Business Korea

South Korean giant company Samsung Electronics announced on Thursday a quarterly profit that could put it ahead of its competitor Apple despite being rocked by the recall of Galaxy Note 7.

The group justified its performance by the success of its new Galaxy S8 and the strong demand for memory chips.

Samsung reported a 72.9% year-over-year increase in its second quarter operating profit to 14.07 trillion won ($ 12.6 billion). Analysts expect Apple to announce a profit of $ 10.6 billion on August 1.

“Samsung is currently beating its rivals, but Apple’s profits vary very little, while those of Samsung vary enormously with the price of memory chips,” said Greg Roh, an analyst with HMC Investment Securities.

Net profit of the South Korean giant fell 88.9 percent in the second quarter to 11.050 trillion won ($9.92 billion), the highest quarterly performance in five years, according to a statement.

Revenues were up 19.7% to 61 trillion won.

“The S8 helped relaunch Samsung and surpass the Note 7 fiasco,” said Bryan Ma, a technology specialist with IDC.

“But you have to bear in mind that Samsung’s performance is also due to memory chips and screens,” he said.

“It’s not all about S8.”

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