Samsung posts record profits in Q1 2017 even as phone sales decline

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Android Central
Android Central
Increased sales in the semiconductor business lead to Samsung's second-most profitable quarter.

Samsung has
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its earnings results for the quarter ending in March 2017, and as it
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a few weeks ago, Q1 2017 was very profitable for the company. Operating profit saw a massive year-on-year increase of 48% to $8.8 billion (9.9 trillion won), leading to Samsung's second-most profitable quarter ever and best-ever first quarter.

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Net profit at $6.8 billion (7.68 trillion won) was also up 46% from the same period a year ago. Although profits increased significantly, overall revenue at $44.7 billion (50.55 trillion won) was a slight increase from Q1 2016's $44.01 billion (49.78 trillion won). Sales from the mobile unit declined, with the business posting an operating profit of $1.8 billion (2.07 trillion won), down 47% from the $3.4 billion (3.89 trillion won) it netted a year ago.


With the termination of the Note 7, Samsung had to rely on the
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for longer than intended, and the company had to reduce its price to stay competitive. That said, the manufacturer saw healthy sales of the mid-range Galaxy A 2017 as well as increased momentum in the mid- to low-end segments in emerging markets. Looking forward to Q2 2017, Samsung is bullish on
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sales leading to increased profits and revenues. In addition to maximizing sales of the Galaxy S8, Samsung will launch a second flagship — the
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— in the latter half of the year.

A bulk of Samsung's profits were from the semiconductor business, where the company saw increased demand for memory products. Overall profits from the division amounted to $5.57 billion (6.31 trillion won) on revenues of $13.8 billion (15.66 trillion won). Sales of DRAM and enterprise SSDs increased, as well as demand for 14nm application processors for mid-range phones and image sensors for flagships. Looking ahead, Samsung is counting on its
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to drive growth, with the 14nm processors branching out into automotive, IoT and wearable segments.

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