Samsung Announces High Profit Estimates For Q1 2017

South Korean prosecutors accused Lee Jae Yong, the heir to the Samsung business empire of embezzling funds committing perjury and playing a key role in a corruption scandal that led to the ouster of former President Park Geun-Hye

According to Samsung, operating profit for the first three months of this year is estimated at 9.9 trillion won ($8.7 billion), up 48 percent from a year earlier.

It is the group's best quarterly profit in nearly four years.

The company has rapidly recovered from last year's costly failure of its fire-prone Galaxy Note7 device, despite a political scandal involving vice-chairman Lee Jae Yong, who faces charges including bribing ousted president Park Geun Hye.

The phone will help the company to gain ground on Apple at the top-end of the market, and its mid-tier offerings are taking off in China, meaning that 2017 is set to be a massive year for the South Korean firm. The average forecast was 9.4 trillion won, and total revenue also rose 0.4% to 50 trillion won.

Samsung is clearly back in the game now with their Samsung Galaxy S8 and Samsung Galaxy S8 Plus but should you go big and get the bigger model with a bigger battery and display or is the smaller model the better choice.

The quarterly earnings preview show that how Samsung's business is booming while its stock trade near historic highs, despite unprecedented crises in recent months.

The bribes are suspected of being given to Choi in return for getting support in the 2015 merger of two Samsung affiliates, which is seen as extremely crucial to the younger Lee to inherit Samsung's management control from his ailing father.

While some companies have been struggling financially for quite a bit now, Samsung has been able to hold strong over the last couple of years.

If the global chip business continues to post robust performances, Samsung's annual operating profit may hover far above 40 trillion won this year coupled with smartphone sales, they added.

Lee, who was arrested in February, has been charged with paying almost US$40 million to the now-impeached president's close friend Choi Soon-Sil, allegedly as bribes to secure policy favours.

Samsung has released its Q1 2017 estimates a week after unveiling its 2017 flagship smartphones i.e. the Galaxy S8 and Galaxy S8+ at its "Unpacked" event in NY. He denies any wrongdoing.

The Seoul district court is expected to give its ruling in May.

Related:

Comments


Other news