Samsung beats profit expectations for Q1

Samsung has announced its Q1 2018 earnings guidance and its profit is set to be significantly higher than analysts were expecting.

Markets were advised that Samsung brought in around 60 trillion won ($56.4 billion) in sales and 15.6 trillion won ($14.7 billion). According to Reuters analysts were expecting profits closer to 14.5 trillion won, but Samsung’s share price still declined a bit because people seem to think this quarter is an exception and semiconductor sales are set to decline in the mid-term.

Samsung is a very diversified company and its recent financial good fortunes have been attributed more to its semiconductor division than devices or whatever. This was certainly the case in the previous quarter and for the whole of 2017. Samsung is especially strong in the DRAM and NAND markets and is is a pretty handy processor fab too. Of course it also provides Exynos processors for Samsung phones in many markets.

One of the external factors probably contributing to slight pessimism about Samsung’s future numbers is Apple’s desire to use it less and its general desire to outsource as little of its device components as possible. This pessimism needs to be put in perspective, however, as Samsung will still make obscene amounts of money, just not quite as much as some city boys might previously have expected.

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