Wednesday, November 1, 2017

The sources of Samsung's record-breaking profits

An article in The Korea Joongang Daily today sheds more light on the sources of record-breaking sales and profits at Samsung Electronics.  (click on the graphic for a full size version)  As shown in the graphic, device solutions including semiconductors and displays were the dominant source of operating profit, followed by IT and mobile communications, which includes mobile phones.
The article noted that "Revenue from Samsung’s semiconductor division amounted to 19.91 trillion won, while operating profit reached 9.96 trillion won. The figures translate to an operating profit-to-sales ratio of roughly 50 percent, breaking a 45.7 percent record reached during the second quarter.
“As businesses that require high-capacity memory chips such as cloud and artificial intelligence services continue to expand rapidly, prices of premium chips are soaring high,” said Song Yong-ho, a professor of electronic engineering at Hanyang University."

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