Samsung posts record profit as chip business grows in the first-quarter report of 2018

Samsung has just posted its operating profit earning for the first quarter of 2018. Samsung’s memory chip business showed a significant growth in the first quarter as the South Korean tech giant said it recorded 11.7 trillion won ($10.8 billion) in January-March net income, up by 52% from 7.7 trillion won a year earlier.

Though, 8 million Samsung Galaxy S9 and S9+ units sold in the first month, yet the company warned of tougher times ahead in the mobile market — including a slowdown in demand for its newest flagships, the Galaxy S9 and S9 Plus.

In addition, Samsung has reported a 20 percent jump in revenue and a 58 percent rise in operating profits as it benefited from strong demand for its memory chips, which are used in everything from phones to servers.

Samsung is best known as the world’s biggest phone, TV and memory chip maker than any other company on the planet. That has boosted Samsung’s results even as the TV market stagnates and the mobile market matures. Last year, Samsung became the world’s biggest semiconductor maker in terms of revenue, beating out the long-term leader Intel.

Furthermore, Samsung forecast that the memory chip business will likely stay strong, but increasing overall earnings will be a challenge given the weakness in its display business and lower profits in the mobile business

Meanwhile, Samsung has also noted in its first-quarter earnings announcement that the display panel segment profits were “affected by the slow demand for flexible OLED panels.” For the second-quarter, the company predicted the same weakness to persist and said it would do cost-cutting and improve efficiency.

Image Source: Cnet