S7, semiconductors to lift Samsung profits in Q2

Solid sales of Samsung Galaxy S7 and demand for flash memory chips will offset the effects of a downturn in DRAM memory chips, boosting Samsung Electronics in the second quarter of this year. "Samsung Electronics is expected to report its second quarter profits above market expectations due to good sales of the S7, improvements to its flash memory chip business and lower Smartphone inventory," said Shinhan Investment in a report, Monday. The local brokerage expects Samsung Electronics to reap more than 7 trillion won in operating profits during the April-June period. If the electronics giant breaks the 7 trillion won level in quarterly operating profits, it will be a first in nine months since the firm reported 7.39 trillion won in the third quarter of last year. "Operating profits of Samsung's mobile business during the latest quarter will reach 3.6 trillion won, up 12.4 percent, year-on-year. Samsung is forecast to have shipped more than 14 million S7 smartphones for the three-month period ended June 30, up 40 percent a quarter earlier," said So Hyun-chul at Shinhan in the report. Samsung has recently been aggressive on sales of the S7 in its key target markets, launching campaigns such as its "one plus one" event, in which consumers buy one S7 and get another free. Such view is in line with Samsung officials who have said smartphone margins will be higher than the previous quarter as low-end smartphones such as Galaxy A and Galaxy J models are contributing more in profits. Click to read the rest of the article