Samsung predicting second-highest operating profits ever 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

The performance of Samsung's Galaxy S8 premium smartphone, which goes on sale on April 21, will be the key variable for Samsung going forward.

While Samsung will not provide detailed earnings results until the end of the month, analysts tipped its chip division to earn a record 5.8 trillion won in January-March and propel the firm to its best overall operating profit since the third quarter of 2013.

Samsung's sales alone make up a fifth of South Korea's GDP, and for many young Korean graduates getting a job in a chaebol is the most desirable outcome after years of toiling through a rigorous education system.

Samsung said the figures are estimates of consolidated earnings based on K-IFRS as Korean disclosure regulations do not allow earnings estimates to be provided as a range.

As the Galaxy Note 7 was discontinued, users who wanted to purchase the phone opted for a Galaxy S7 device instead.

The company has been able to push through and their forecast tells us that they're expecting to post a $8.8 billion profit for the first quarter of this year.

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.

This means Samsung may have achieved that nearly 50 percent operating profit increase despite its Q4 2016 Galaxy Note flagship being dropped, the Galaxy S7 coming in Q1 last year (just) and the Galaxy S8 coming in Q2 this year, and its boss being recently arrested.

Lee Jae-yong, the de facto leader of Samsung Group on Friday denied bribery allegations in his first court hearing held in relation to a massive corruption scandal that ousted President Park Geun-hye.

Lee was arrested in February and appeared in a Seoul court on Friday.

Some researchers forecast the S8, which sports the largest screens for Samsung high-end smartphones to date, would set a new first-year sales record. Previously, the smartphone business was the company's main contributor.

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