In 2017, Samsung received a record $ 50 billion in profits, but smartphone sales fell

By: Bohdan Chub | 31.01.2018, 16:16
In 2017, Samsung received a record $ 50 billion in profits, but smartphone sales fell

The internal crisis did not affect the financial performance of Samsung. The Korean giant reported on record profits for the fourth quarter and the entire 2017 year. The main driver of growth was the semiconductor business, while in the mobile unit reported on the decline in revenue.

A lot of memory does not happen

Samsung's operating profit in the fourth quarter rose 64% to a record $ 14.29 billion. Net income jumped 42% to $ 11.18 billion. Revenue for the entire 2017 was $ 223 billion, and operating profit was $ 50 billion, up 83% from last year's figure .

Almost two thirds of the company's revenues fall to the chip manufacturing division. This is due to the high demand for DRAM and NAND memory - due to the shortage of the price of chips, they do not even think of falling. As a result, Samsung has already bypassed Intel's processor giant in revenue from the sale of semiconductor solutions. In October-December, also increased shipments of OLED-displays for top-end smartphones, including the best-selling iPhone X.

And what about smartphones?

At the end of the year, smartphone business showed a slight drop in operating profit from $ 2.34 to $ 2.27 billion. The main reason is the increased marketing expenses during the holiday season, but the volumes of supplies also decreased. Samsung is not too worried about this, as sales of flagships go up the hill. In the future, the company hopes to improve the performance of the division due to the devices of the older lines, although the first quarter will traditionally be weak. The new models Galaxy S9 and Galaxy S9 + will appear in stores only by mid-March and will not save the situation.

Source: Samsung