Samsung forecasts record Q1 earnings on upbeat chip sales

Gwen Vasquez
April 21, 2017

Preorders for Samsung Electronics Co.'s new flagship smartphone Galaxy S8 are about 40 percent higher than that of the Galaxy Note 7 in the first day of preorders, industry sources said Friday.

So naturally, Samsung would have likely been able to post even greater profits for Q1 of this year if the Galaxy Note 7 issue didn't crop up, but thankfully it didn't impact the company that much. Samsung stock rose 14 per cent in January-March, its strongest gain since the first quarter of 2012. Samsung was forced to recall it late past year after reports of the device overheating and exploding. The announcement comes after the company struggled with the global recall of the Galaxy Note 7 and a political scandal involving the company's Vice Chairman Jay Y. Lee. The figure is higher than the average 9.4 trillion forecast from 18 analysts, according to Reuters. Its sales stayed almost flat at 50 trillion won ($44 billion) during the first quarter.

Nothing concrete can be ascertained from Samsung's press invite, which says "Lean Is the New Mean".

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Of the total, 20.4 billion won went to two dubious foundations allegedly controlled by Choi.

The scandal engulfed Park's administration, prompted millions of South Koreans to regularly protest in the streets and culminated in Park's ousting in March.

Lee's lawyer flatly denied the charges. It is scheduled to give more details including quarterly net profit later in the month. Memory chip sales increased but its own smartphone sales declined on the year, apparently due to the delayed release of the high-end Galaxy S8. Experts estimate Samsung to have earned more than 6 trillion won from chip business in the first quarter, beating 4.95 trillion won profit in the fourth quarter. But that might not be such a bad sign, considering the Galaxy S7 launched in Q1 a year ago and the Galaxy S8 isn't going on sale until later this month - not to mention the fact that Samsung doesn't have a new Galaxy Note on sale right now.

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