Date
21 April 2018
HS Kim, president and head of Samsung Electronics’ consumer division, speaks at a press conference at the CES event in Las Vegas on January 8. Photo: Reuters
HS Kim, president and head of Samsung Electronics’ consumer division, speaks at a press conference at the CES event in Las Vegas on January 8. Photo: Reuters

Samsung flags record 4Q profit but misses expectations

Samsung Electronics said on Tuesday that it expects a 64 percent jump in fourth-quarter operating profit, taking the figure to a new record, but the guidance fell short of market expectations.

The South Korean tech giant projected the operating profit for the three months to December to come in at 15.1 trillion won (US$14.1 billion), Reuters reports.

Though it will mark a new high, the number missed expectations amid a strong won and year-end bonuses.

Analysts surveyed by Reuters had forecast 15.9 trillion won profit on average for the company for final quarter of 2017.

Based on the guidance, Samsung’s full-year operating profit is estimated at 53.6 trillion won, compared with 29.2 trillion won in 2016, putting the tech titan on course for a record annual profit.

Revenue was estimated to have increased 24 percent to 66 trillion won, against analysts’ average forecast of 66.8 trillion won.

Samsung will unveil its quarterly and full-year results at the end of January.

The continued rise in the price of DRAM chips more than made up for a drop in NAND chip prices and a stronger won, Reuters cited analysts as saying.

But the outlook for semiconductors in 2018 is mixed. NAND flash memory chips, used in things like digital cameras and USB drives, have entered a down-cycle and some analysts believe DRAM market conditions also will soften later this year.

Others however expect DRAM supply to remain tight throughout 2018 as global tech behemoths such as Google, Amazon and Facebook expand data centers used for cloud storage and computing.

The outlook for smartphones and other mobile devices is also uncertain due to competition from Chinese rivals in markets like Europe and Asia, the report noted.

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CG/RC

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