Samsung share near record high: Samsung expects operating profit at record level

Samsung share near record high: Samsung expects operating profit at record level

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The technology giant Samsung has earned record operating profit in the second quarter. The reason for this is the strong demand for storage chips of the South Korean Group. The market leader in smartphones, memory chips and televisions told on Friday that the profit from the core businesses will rise by 72 percent to about 14 trillion won (10.6 billion euros).

As in the first quarter, Samsung’s estimates are above market expectations. Samsung expects sales to rise by 18 percent to approximately 60 trillion won. The Apple rival ( Apple ) traditionally presented the detailed results only at a later date.

For the second quarter, Samsung expects operating profit of 13.29 trillion Korean won ($11.5 billion) with 58.79 trillion Korean won in sales. If the forecast is true, Samsung’s operating profit would mark a 63% growth from the same period a year earlier. In the same quarter, Apple is projected to record revenue of $44.9 billion and an operating profit of $10.49 billion.

History tells us that it has never happened in the past that Samsung report higher quarterly operating profit than Apple.

The key data on the stock exchange have already been received positively. Samsung shares trimmed losses and remained near June reached record high of 2.42 million won. Samsung’s stock market value rose last year by about two thirds to 314 trillion won (244 billion euros). Compared to Apple, Samsung is still a light weight on the stock market. The market capitalization of the US company also rose sharply in the past twelve months to a total of about 745 billion dollars (653 billion euros).

It was only on Tuesday that Samsung announced its plans for the expansion of the business with memory chips. In the expansion of two semiconductor plants in Pyeongtaek and Hwaseong, the company plans to invest a total of 20.4 trillion Won by 2021.

After the debacle with burning batteries at Samsung’s flagship smartphone Galaxy Note 7 last fall, the introduction of the successor model is expected. The note 8 reportedly will be presented in August in New York. There was no official confirmation. On Friday, Samsung reissued the note 7 in a revised version in South Korea.

“In July DRAM prices will go up again, while from mid-August on, OLED panels go out for Apple,” HMC Investment analyst Greg Roh said. He expects the South Korean electronic giant third-quarter operating profit to surpass 15 trillion won.

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