Samsung Profit Jumps to Record High for Quarter
July 26 2017 - 9:02PM
Dow Jones News
By Timothy W. Martin and Eun-Young Jeong
SEOUL-- Samsung Electronics Co. delivered its biggest-ever
quarter of profits, shrugging off a year of tumult by leaning on
its dominance as a supplier of electronics components that even its
rivals can't do without.
Samsung said net profit jumped to 11.05 trillion South Korean
won ($9.9 billion) for the three months ended June 30, an 89% rise
from 5.85 trillion won for the same period a year earlier. Revenue
shot up to 61 trillion won from April to June, rising from the
prior year's second-quarter revenue of 50.94 trillion won.
The South Korean technology giant blew past its previous record
quarterly net profit of 8.24 trillion won, which came nearly four
years ago as booming smartphone sales drove growth. In a shift from
those days, components such as semiconductors and display panels,
sold to competitors such as Apple Inc. or Sony Corp., now account
for about 70% of the firm's bottom line.
Samsung's profits were also boosted by strong sales of the
Galaxy S8, its first premium smartphone since last year's global
recall of the Galaxy Note 7. The Galaxy S8 won strong reviews for
its sleek design that packs a larger screen in a slimmer phone than
prior premium models. Samsung said the Galaxy S8 and the larger S8+
have outsold its predecessor, the Galaxy S7, "in almost all
regions."
The record-breaking results also position Samsung to top Apple
in quarterly profits for the first time. Apple has a projected net
income of $8.2 billion for the three-month period, according to
analysts polled by S&P Global Market Intelligence, in what is
traditionally a weaker quarter for the world's most-valuable
company. Apple, set to launch its 10th-anniversary iPhone this
year, is still projected to notch up larger full-year profits than
Samsung.
Samsung Electronics shares are trading near all-time highs and
have risen more than 60% over the past year.
Write to Timothy W. Martin at timothy.martin@wsj.com and
Eun-Young Jeong at Eun-Young.Jeong@wsj.com
(END) Dow Jones Newswires
July 26, 2017 20:47 ET (00:47 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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