Samsung Electronics reports 52-percent jump in Q1 net profit

Samsung Electronics reports 52-percent jump in Q1 net profit

Samsung Electronics reports 52-percent jump in Q1 net profit

(TSM), which makes the A10 and A11 chips that go into the iPhone X, slashed its revenue forecast range for the second quarter to between $7.8 billion and $7.9 billion based on "weak demand" in the mobile sector.

The South Korean technology giant saw net profits of 11.7tn won ($10.8bn; £7.7bn) between January to March, up 52% from a year earlier.

"Therefore, its overall business performance will be about the same as the first quarter", said the analyst, projecting a 15.5 trillion won operating profit.

At the end of 2018, you might see the first iPhone X Plus model that will copy the Galaxy Note's signature feature.

The lion's share, more than 70 percent or 11.55 trillion won ($10.7 billion), of its latest quarterly operating income was generated by the semiconductor division.

Samsung, the world's biggest maker of memory chips, has recovered from a series of setbacks. The continued success of the Galaxy S8 also contributed. It expects solid demand from data centers and smartphones for both DRAM and NAND memory chips.

The company also revealed that decreased demand for OLED panels used in smartphones could pose a challenge during the second quarter. However, the key business with chips will remain strong.

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It said: "The company believes opportunities will widen for the set business, as digital devices become increasingly connected". The stock has fluctuated this year on concerns of slowing chip and smartphone markets after they traded near record highs in 2017.

However, the average sales price grew 21% year-on-year in the quarter, leading to an 18% rise in global smartphone revenue year-on-year to $129.8 billion. Earnings for the Networks Business also improved due to LTE investments from major overseas partners and an expansion of new solutions for optimization of network operations.

Samsung's 1Q earnings announcement is available to read here.

As today's report is the second time we're hearing about pricing negotiations, Samsung's response should come up soon if we're lucky. In February, it launched the Samsung Galaxy S9, which has been a hit among consumers around the globe.

Can Samsung's record-breaking success continue?

However, growth in the area is expected to be short-lived.

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