Samsung's record profits continue on the back of strong Galaxy S8 and DRAM sales

After recording its best-ever first quarter earlier this year, Samsung has managed to post record-breaking profits once again in Q2 2017 (opens in new tab). The South Korean manufacturer netted an overall revenue of $54.2 billion (61 trillion won), a year-on-year increase of 20%, or $8.8 billion (10.06 trillion won). Operating profit increased by a staggering 72.7% to $12.5 billion (14.1 trillion won), allowing Samsung to overtake Apple, who is projected to bring in $10.6 billion this quarter.
Net profit almost doubled from Q1 2017, and a lot of that is down to the strong showing of the semiconductor division. Healthy demand for high-density DRAM modules and SSDs for the enterprise segment led to a three-fold increase in profits to $7.2 billion (8 trillion won). It looks like the demand won't abate anytime soon, as Samsung expects the components division to drive growth in the latter half of the year.
Qualcomm turned to Samsung for the fabrication of the 10nm Snapdragon 835, and the South Korean manufacturer is looking to expand capacity and improve production efficiency of its 10nm node. Looking ahead, the company is settings its sights on the 8nm node and EUV.
Strong sales of the Galaxy S8 and S8+ allowed the mobile unit to post revenues of $26 billion (30.01 trillion won) and an operating profit of $4 billion (4.6 trillion won). Samsung mentioned that its 2017 flagships outsold last year's Galaxy S7 in "almost all regions," with the larger Galaxy S8+ netting over 50% of the sales.
Galaxy S8 and S8+ outsold last year's flagships in 'almost all regions'.
While Samsung sold more premium phones, the company's mid-tier and budget phones didn't do so well, leading to unchanged sales figures from Q1. Looking ahead to the third quarter, Samsung is pushing to regain lost ground in the budget segment with the Galaxy J 2017 series, and continue its dominance in the premium category with the launch of the Galaxy Note 8.
Samsung is also planning an aggressive marketing campaign for its upcoming flagship:
For the Mobile Business, earnings are forecast to decline due to increased marketing costs related to the launch of a new Note device, with reduced profit contributions from the Galaxy S8 and S8+.
Samsung is forecasting decreased profit margins for the Galaxy S8 in Q3, but the company should have no problems moving millions of units during the latter half of the year.
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Harish Jonnalagadda is a Senior Editor overseeing Asia at Android Central. He leads the site's coverage of Chinese phone brands, contributing to reviews, features, and buying guides. He also writes about storage servers, audio products, and the semiconductor industry. Contact him on Twitter at @chunkynerd.
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Wow I know Im contributing to there bottom line hehe . Love my s8 plus
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I love my S8 too.
Normal sized S8 race! :P -
Same here, maybe the best phone I've ever owned.
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Same here! This is the best experience I have ever had on mobile. I can't see myself every going back to an iPhone.
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welcome to the club
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I had no idea that the S8+ was so popular. I assumed the regular sized would sell more.
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folks go for bigger things (battery mainly) and have adapted to the big screens it seems
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Love my s8 +. Incredible to have a 6+ inch phone and feel smaller than my old 5.5 inch iPhone 6 plus. Honest the most amazing phone and love it to bits.
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The best phone on the planet #S8plus
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Galaxy s5 is the best
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Ha! My girlfriend's S5 won't hold a charge anymore; should probably just get her a new battery.
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🤣🤣😅😁😁 are you trying to justify your failure to upgrade???
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Wonder if Rene Ritchie is trying to think of a way to spin this...
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Android central!!!! Be honest.
Other sites have already posted that its not mobile. -
Did you miss the entire second paragraph?
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it says mobile unit posted revenues of $26 Billion and net operating profit of $4 Billion...
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...that's all you got, it's not mobile? What about the iPhone 7s is that not mobile too?
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The message has become very clear, people love the larger form factor phones a lot more, this is why is becoming ever so difficult to find a high speced small smartphone on android these days. Which is a pity, because for those who also use their tablets, the tablet handles the big screen needs. So a nice easily pocketable phone would be a blessing. Before anyone mentions a Google Pixel, just note that they are not available in a lot of countries.
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Bring on the Note 8. My S7 has been pretty good (the camera is still a wow) but it is jut not a Note 7. I would have kept the Note 7 until it turned to dust at my touch. Really planning on doing that with my Note 8 (especially given the price tag).
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Great phone!!!