Samsung Witnessing An Income Bloom Thanks To Memory Chip Market Demand
Samsung Electronics has reported a record profit of 11.2trn won – around $10 billion – in the July to September period, it said on Tuesday, their best quarter run yet. Officially the world’s biggest chip and smartphone manufacturer, the tech giant has achieved a daily income of around $109 million a day, despite the corruption scandals involving high-ranking heads in the company.
The company’s de facto leader was jailed in August for bribery and faced a recall of its flagship Galaxy Note 7 device. The emerging Samsung Group had its heir, Lee Jae-Yong, found guilty in August of bribery, perjury and other charges stemming from payments to the secret confidante of ousted president Park Geun-Hye. The group’s key subsidiary is of course the Samsung Electronics branch.
Lee, who was jailed for five years, says he is innocent and an appeal process has been started.
The firm provides memory chips for PCs, servers and mobile gadgets of its own but also other industry rivals including Apple, with that “component business” easing the drops of their gadget sales.
SE’s net profits jumped 148% on the same period a year ago partly because of increased demand for their memory chips and a reboot of the mobile market after the exploding battery scandal of the Galaxy Note 7 model.
Samsung predicted “positive growth” in the semiconductor business next year as technological advances in artificial intelligence (AI) and machine learning fanned demand for high-powered processor chips.
Trust in the company’s products is obviously on the rise. The firm described Tuesday’s numbers as an “overall robust performance”. So far, Apple has a fairly strong competitor who can obviously stand back on their feet after numerous scandals, affairs and changes in management.
“The technological advancement of mobile devices with dual camera, 3D sensors and on-device AI will spur DRAM (dynamic random access memory) growth,” the report stated. Further growth will be largely dependent on these factors.