Business has been great for Samsung Electronics this year and they are set to make the most profit in the second quarter of 2017. The operating profit of Samsung Electronics this second quarter does not only surpass those of its rivals, like Apple and Intel, it is also comparable to the profits from Americas leading IT companies such as Facebook, Amazon, Netflix and Google put together.
Current estimates show that Samsungs operating profit is about $11.6 billion (13.1187 trillion KRW) and there is a very good possibility that the final figure will be much higher. Already, stock firms are forecasting an operating profit in excess of $12 billion (14 trillion KRW) for this second quarter. Samsung Electronics profit is already above their main competitor and the top company in IT industries, Apple. The 2017 second quarter operating profit estimates from Shinhan Investment Corporation for leading manufacturers are given below
This second quarter operating profit of Samsung Electronics is second to none. Huge oil companies such as Exxon Mobil and Sinopec, which have a top global ranking, are not expected to exceed $8.80 billion (10 trillion KRW) operating profit this second quarter. Operating profits is not really dependent on sales as the oil companies make more sales than Samsung Electronics but their profits are not comparable. Huge shopping malls such as Wal-Mart make much more sales but its operating profit this second quarter is only about $2.64 billion (3 trillion KRW), which is four times lower than that of Samsung Electronics.
From Semiconductor field alone, Samsung is estimated to take home $6.16 billion (7 trillion KRW) which is more than what Intel is projected to make ($3.89 billion) for the entire second quarter. Samsung is set to experience its largest ever operating profit and this is mainly as a result of the positive semiconductor market which accounts for over 50% of the operating profit. The high demand for DRAMs and NAND memories as well as the revival of its smartphone display are instrumental to the positive profit.
A representative for an industry said that
“Samsung Electronics’ operating profit ratio in its semiconductor business is surpassing 40%.”, He added that “Although increase in number of demands from markets has affected its profit ratio, the reason why its profit ratio has risen so high is because it has widened gap between itself and its competitors in technical skills.”
Samsung Electronics are expected to make over $44 billion (50 trillion KRW) this year. The semiconductor and display business boom will probably be consistent and may extend to other aspects such as smartphones and home appliances. Apple is expected to release its new iPhone sometime in the second quarter and depending on the performance of that smartphone, Samsung may lose its place. Nevertheless, it is expected to compete for the top place in the third and fourth quarters of the year with the possibility that this positive trend for Samsung Electronics will continue next year.