Samsung Q2 chip sales are $15.7bn

Samsung

Samsung

The clear standout business segment for Samsung was its semiconductor business, which increased its operating profit to 8 trillion won from 2.6 trillion won a year ago.

The home entertainment unit's operating profit improved 8.1 percent during the same period to 343 billion won while the revenue dropped by 3.8 percent.

Intel, which reports its quarterly earnings later Thursday, is expected to report $14.4 billion in quarterly revenue. That demand, coupled with a tight supply, has seen the price of memory chips shoot up over the previous year, bringing an unprecedented level of profitability to suppliers such as Samsung.

In May, Samsung said it had sold over 5 million Galaxy S8 and S8 Plus units.

Mobile devices and data are the keys to understanding Samsung's ascent as the new industry leader, even as its de facto chief is jailed, battling corruption charges, and it recovers from a fiasco over Galaxy Note 7 smartphones that had to be axed past year because they were prone to catch fire. Analysts expect the iPhone maker to report revenue of $44.9 billion and an operating profit of $10.5 billion, according to Reuters and Bloomberg data.

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The chip unit achieved this performance thanks to strong demand for high-density DRAMs and SSDs for servers in a low-supply environment.

Samsung's display business, which makes high-end OLED display panels for smartphones and TVs, also saw solid earnings of 1.7 trillion won, while its mobile business reported 4.1 trillion won in operating profit, driven by sales of its Galaxy S8 series.

This month the firm said it will invest 20.4 trillion won by 2021 to expand and upgrade its chip plants in the South Korean cities of Pyeongtaek and Hwaseong.

The company on Thursday also announced its third share buyback of the year, at KRW 1.7 trillion ($1.53 billion or rougly Rs. 9,802 crores) worth of common shares, as part of the KRW 9.3 trillion (roughly Rs. 53,629 crores) annual total that Samsung promised in January. The rising use of vehicle connectivity and the "internet of things" is expected to drive still further demand for the chips that have helped Samsung move ahead, at least for now.

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