Samsung expected to post record profit in the fourth quarter of 2017

samsung profit Q4 2017

South Korean tech giant Samsung defended the top spot in smartphone market in the third quarter of 2017 against their challengers from US and China, who, despite weakening sales in their home market, all posted double-digit sales growth. Samsung saw the most impressive quarter overall, with a whopping 19.3% increase in sales.

Now Samsung is expected to post a record profit in the fourth quarter of the year on its strong chip business, a market tracker said on Dec. 7.

FnGuide said a consensus market forecast of Samsung’s operating income amounts to 16.3 trillion won (US$14.90 billion) for the October-December period, up 77.2 percent from a year earlier. The figure also hovers far above the company’s operating profit of 14.5 trillion won for the previous quarter.

The consensus forecast of Samsung’s sales for the current quarter stands at 66.1 trillion won, up nearly 28 percent from the same period a year earlier. Among local brokerages, Hanwha Investment & Securities has forecast the largest operating income of 16.9 trillion won, according to FnGuide.

Analysts predicted Samsung’s chip division to drive the company earnings for the fourth quarter on strong global demand, with its operating income exceeding the 10 trillion-won mark for the first time

“Google, Facebook and other global IT companies are continuing to increase investment, fueling brisk demand for server DRAMs,” said Doh Hyun-woo, analyst at Mirae Asset Daewoo Securities Co. “In addition, demand for mobile DRAMs has recently started to pick up.”

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