Samsung remains wary of future even with record earnings

A Samsung customer browses a web page showing a fire-damaged Samsung Note 7 mobile phone on a similar device at a Samsung store in a mall beneath the company's headquarters in the Gangnam district of Seoul

The South Korean tech giant estimated its operating profit for April-June at 14 trillion won ($12.1 billion), up from 8.14 trillion won a year earlier.

Samsung is forecasting quarterly profits boosted by increased demand for its memory chips and display panels, as it puts the Note 7 debacle of past year behind it.

Executives were quoted in news reports as crediting the profits to bold investments made three to five years ago by members of the owner family through the now defunct Corporate Strategic Office, a former control tower of Samsung companies.

SAMSUNG IS EXPECTING record second-quarter earnings thanks to thanks to its growing memory chip business.

Samsung's latest flagship smartphone, the Galaxy S8, also helped.

Galaxy S8 shipments could top 15 million units this quarter, Tim Long, an analyst at BMO Capital Markets, told clients in a note Friday. At Apple, by contrast, analysts are predicting a profit of $10.6 billion (£8.2 billion). Final earnings results will be released later this month.

The company also plans to expand its NAND chip plant in the Chinese city of Xian to meet booming demand for the chips used in high-end storage products. It probably earned 7.5 trillion won in chips, 3.8 trillion won in mobile devices and 1.5 trillion won in displays, Mr Lee said.

The profits indicate strong performances from all its divisions. (Nasdaq: INTC) as the world's biggest chip company by revenues this year.

Business at Samsung will likely go on without a hitch, since other senior officials have been given some decision-making authority.

Samsung shares were down 0.3 percent in early Friday trade, compared with a 0.2 percent fall for the broader market, as the strong earnings outlook was already priced in. DRAM memory - which boasts a hefty profit margin of almost 60% - likely accounted for more than 30% of the South Korean giant's first-half profit, while flash memory apparently made up about half.

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