Samsung Electronics forecasts record breaking profit in Q2.


Samsung Electronics has posted its biggest ever quarterly profit thanks to surging global demand for memory chips.

The Korean tech giant estimates it raked in an operating profit of 14 trillion won ($12.11 billion) for the quarter ending in June.

The performance would mark a new watershed for the company, and beats a 13.1 trillion won average of 19 analyst estimates compiled by the publication.

Samsung expects revenue to be up 18 percent year-over-year at 60 trillion won, again above analyst forecasts of 59 trillion won.

If Samsung’s estimates are accurate, the company will enjoy back-to-back record-breaking quarters. For the quarter ending in March, Samsung managed to reach an operating profit of 9.9 trillion won on revenues of 50.55 trillion won.

Samsung shares were up 2.1 percent as of 0038 GMT, outperforming a 0.3 percent rise for the broader market .KS11. The stock briefly traded at a record high of 1.831 million won.

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.

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.

Also on Friday, Samsung launched a new phone in South Korea using parts form the Note 7 to “minimise the environmental impact” of its high-profile flop.It also helped tech giant to boost profit in coming months.


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