Korean tech giant, Samsung Electronics, said its fourth-quarter earnings will break yet another record thanks to their booming semiconductor business.
On Monday, Samsung Electronics announced its October- December operating profit surged 64 percent, with the latest calculations pointing to a 15 trillion won ($14.1 billion) mark. The results were higher than last year’s fourth-quarter earnings of $9.2 trillion won. While the rise was noticeable from all corners of the market, the projection ultimately fell short of analyst expectations who estimated 15.9 trillion won. According to financial holding company, Nomura Holdings, Samsung spent 700 billion won ($655 million) as bonuses to its workforce.
Samsung’s announcement marks its third consecutive record of quarterly operating profit. According to the electronics company, they had record profits in the previous 2017 fiscal quarter as well. In the third quarter of last year, Samsung registered a 14.53 trillion won profit, beating its $14.07 record it set in the previous quarter. In addition, the company is expecting this quarter to reign in 66 trillion won ($62 billion), a 24 percent increase from last year.
The primary reason behind Samsung’s renewed strength is its growing chip manufacturing division. Consumers want faster phones, with bigger data storage and smooth interfaces, something which the company excels in providing via its quality semiconductors. Samsung owns approximately half of the world’s dynamic random-access memory chips which ensure that computers can run many programs at the same time and temporarily store data. More so, the tech company, own about one-third of the world’s NAND chips, which allow devices to store files. The tech juggernaut sells more smartphones and TVs than any other manufacturer in the world.
While it’s semiconductor business is keeping Samsung in the big bucks, analysts think 2018 will see the price of chips fall, affecting the Korean company in the process. Other analysts, however, believe a price fall would actually raise Samsung’s stocks.
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