Samsung sees record quarterly profit

By BBC

Samsung Electronics has reported a record quarterly profit thanks to surging global demand for memory chips.

The South Korean tech giant reported an operating profit of 14 trillion won ($12bn; £9.3bn) in the three months to June, up 72% on a year earlier.

Sales climbed 18% to 60 trillion won, buoyed by strong sales of smartphones including the new flagship Galaxy S8.

Analysts say the results indicate Samsung has recovered from the disastrous Galaxy Note 7 recall.

That handset was axed after a battery fault led to some devices catching fire.

Also on Friday, Samsung launched a new phone in South Korea using parts from the Note 7 to “minimise the environmental impact” of its high-profile flop.

Reputation recovered?

Some research firms predict that Samsung is set to overtake Intel as the world’s biggest chipmaker by sales this year.

It has benefitted from both rising demand and prices for semiconductors, or memory chips, which are used in smartphones and computers.

A Samsung customer browses a web page showing a fire-damaged Samsung Note 7 mobile phone, on a similar device, at a Samsung store in a mall beneath the company's headquarters in the Gangnam district of Seoul on October 12, 2016Image copyright AFP
Image caption: The Galaxy Note 7 recall saw Samsung’s market share slip earlier this year.

The Note 7 debacle damaged Samsung’s reputation and caused it to lose its position as the world’s biggest smartphone maker in the first quarter.

Rivals such as Apple and China’s Huawei, Xiaomi and Oppo gained market share following the recall.

Samsung has also seen its image dented by the arrest and ongoing trial of de-facto chief Jay Y. Lee over a political bribery scandal. Mr Lee denies the charges.

  

Latest posts

Govt set to launch Schoolnet Programme project

Claire Wanja

Crown Motors Group launches Nissan Magnite SUV in Kenyan market

Christine Muchira

Education ministry to certify 5,000 youths with technical skills

Margaret Kalekye

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More