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Forecast: Samsung's operating profit to increase by 40 percent in Q1
Samsung has had its share of problems recently. Lee Jae-yong, the company’s vice chairman and current acting leader, has been arrested for allegedly attempting to bribe the president of South Korea. Additionally, the tech giant still hasn’t been able to close the Galaxy Note 7 chapter, as it is facing quite a few lawsuits both at home as well as abroad.
But it looks like these problems don’t have an impact on Samsung Electronic’s profit. According to a forecast from KB Investment and Securities, the company’s operating profit in the first quarter (Q1) of 2017 is expected to increase by 40 percent year-over-year to 9.3 trillion won, which is around $8.14 billion.
It was initially expected that Samsung’s Q1 operating profit would be lower when compared with the same period a year ago, but it looks like strong prices of semiconductors and display products have helped increase Samsung’s financial results.
Combined, the semiconductor and display divisions are responsible for up to 71 percent of the group’s total operating profit, which is 18 percentage points more than the year before. Samsung made the most money with semiconductors — 5.5 trillion won ($4.6 billion) — followed by IT mobile, display and consumer electronic divisions.
Keep in mind that this is a forecast and not an official financial report released by Samsung. If correct, it shows that Samsung is doing a lot better than expected, despite the problems and challenges it has been facing recently. In addition to those listed above, the company’s reputation among US consumers has taken a beating, according to the Harris Poll Reputation Quotient survey.