Samsung Electronics to be No.1 surpassing Intel & Apple

[Digital Times, Park Seul-gee] Samsung Electronics has overtaken Intel and Apple`s performance in the global semiconductor and IT sectors in the second quarter. It became the most profitable company in the world in 48 years after it started as an electronics company that produces color TVs and refrigerators in 1969. Especially, semiconductors and displays, which have led Samsung`s earnings, are forecast to grow strongly in the second half of the year, which should solidify the company`s annual operating profit of more than KRW 50 trillion.

Samsung Electronics is expected to outperform Apple and Intel in Revenue of KRW 60 trillion and operating profit of KRW 14 trillion in the second quarter. Securities analysts expect Apple`s second quarter operating profit to be around KRW 12 trillion. Samsung Electronics` semiconductor business is expected to reach KRW 18 trillion and its operating profit reach KRW 8 trillion, surpassing Intel`s earnings forecast, which has been the world`s top semiconductor company for 24 years. Samsung Electronics has already surpassed KRW 2 trillion in operating profit (about KRW 4.5 trillion) in the first quarter, surpassing more than KRW 1 trillion in the second quarter. It is the No. 1 position in the semiconductor market.

Samsung Electronics is leading the global IT market as well as leading the management index. Especially, Samsung Electronics solidified its position in the semiconductor business as a leading company in `super-gap strategy`.

DRAM microprocessing, and high-level stacking technology in NAND flash. In the foundry business, the company is also strengthening its competitiveness by setting the goal of lowering the fine process from 8nm this year to 4nm by 2020. In the third quarter of this year, Samsung Electronics` semiconductor division`s sales and operating profit are expected to exceed KRW 20 trillion and KRW 9 trillion, respectively.


The display business also recorded record highs in the second quarter due to rising panel prices for large LCDs and growing demand for small- and medium-sized organic light emitting diodes (OLEDs). Samsung Display, which dominates the OLED market for smartphones, is expected to post sales of KRW 7 trillion in the second quarter and operating profit of KRW 1.7 trillion. Of these, the company expects to post quarterly sales of more than KRW 8 trillion and operating profit of more than KRW 2 trillion in the second half of this year.

Shipments of the Galaxy S8 surpassed 10 million units in just three weeks after launch in the IM (IT and mobile) business, showing the fastest shipment rate among the previous Galaxy S series. The second quarter operating profit is estimated to have doubled to KRW 4 trillion due to shipment volume exceeding 20 million units in the second quarter. It is expected to maintain earnings of around KRW 3 trillion in the second half of the year due to the launch of new products such as Galaxy Note FE and Note 8.

Samsung Electronics, which recorded unprecedented results in the second quarter of the year, in the second half of the year, continued to secure profitability in the semiconductor, display and smartphone businesses due to capacity expansion and new product launches. It expects to further strengthen its position in the market.

Samsung Electronics is expected to generate annual operating profit of KRW 50 trillion for the first time in Korea based on this.

As the company expects operating profit of KRW 24 trillion in the first half and if the company maintains its pace in the second half, the company will be able to achieve an operating profit of KRW 50 trillion. This makes Apple a top-tier global IT company. Semiconductors, which generated an operating profit of nearly KRW 14 trillion in the first half, expect operating profit of more than KRW 9 trillion in the third quarter and the fourth quarter to reach more than KRW 30 trillion in annual operating profit. The company can expect operating profit of around KRW 13 trillion from smartphones and display profit of KRW 7 ~ 8 trillion a year. Electronics industry expert said, "If Samsung Electronics continues this trend, we can expect more than KRW 15 trillion in operating profit in the third quarter and an annual operating profit of KRW 50 trillion. It is also important how to build a foundation for growth in the home appliances and smartphone business. "


By Park Seul Gee seul@


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