Samsung forecasts record profits of $14.6 billion in Q1 2018 as chip business takes off
Samsung has eclipsed everyone else, and is now competing with itself.
Samsung saw a huge uptick in profits and revenue last year, and it looks like the company’s momentum hasn’t slowed one bit in 2018. In its Q1 2018 earnings guidance, Samsung is forecasting that its quarterly revenue will be in the vicinity of $56.5 billion (60 trillion won), with an operating profit of $14.6 billion (15.6 trillion won) — making it Samsung’s most profitable quarter ever.
To put things into perspective, Samsung’s operating profits are set to rise 57% from the same period a year ago, during which it made $8.8 billion. The manufacturer beat its previous profit record of $14.13 billion — posted in Q4 2017 on the back of $61.5 billion in revenue.
Samsung overtook Intel at the end of last year to become the largest chipmaker in the world — a title Intel managed to hold onto for the last 25 years — and it once again looks like the chip business was the main driver for growth in Q1 2018. We’ll have to wait until the end of the month, which is when Samsung releases its earnings in full, to get an idea as to what divisions contributed to the uptick in profits.
As for the phone unit, sales from flagship devices usually reflect in the second quarter, so it’ll be interesting to see if Samsung can eclipse its profit record once again after three months.
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