Samsung has been lately surrounded by problems including the failure of its Galaxy Note 7 devices, and a corruption scandal that involved Vice Chairman Jae Y. Lee. But it appears like Samsung is finally seeing some good days with a forecast of a best quarterly profit; in the January to March time phase, in 3 years, according to Reuters. The last time a great operating profit on an overall basis reported by Samsung was during the third quarter of 2013. Significantly, this will put the Seoul company back on track, thanks to the incredible backing by its chip businesses.
Samsung Forecasts its First Quarter Profits
Even as Samsung heads towards the best quarterly profit in 3 years, the detailed figures will be announced during April. The Seoul company forecasts its first quarter’s operating profit of about $8.8 billion (9.8 to 10 trillion Korean won approximately), on estimated sales of $44.9 billion (49-51 trillion Korean won). Samsung plans to break down the exact numbers of its first quarter’s (Q1) performance; according to different categories by the end of April.
According to Lee Min-hee, analyst at Heungkuk Securities; the main driving factor for Samsung’s earnings was its semi-conductor business, reports Reuters. In addition to that, sales from mid and low segment smartphones has also helped Samsung in gaining profits.
Moreover, Reuter reports that the shares of Samsung were at a record high of 2.134 million Korean won during late March; due to estimates of high profits in 2017. This will help the South Korean company to spring back from the humiliating failure and withdrawal of the Samsung Note 7 devices; due to its flammable batteries.
Samsung to Bounce Back in Business
Also, the Samsung Galaxy S8 is releasing in the markets on April 21 with huge speculations; which is the first premium release after Note 7’s withdrawal from the market. This is the reason many analysts and investors estimate that Samsung will report a great quarterly profit during the time period of April-June.
Samsung noted a rise in its stock at 14 percent during January to March; which is its best gain after the first quarter of 2012. Apparently, Samsung will be back with a bang; if the forecasts and reports are to be believed. Samsung is geared up to give a tough competition to its rival, the Apple iPhone series; with the release of its much awaited Samsung Galaxy S8.