Samsung posts highest quarterly profit in three years

"This is what the future looks like for our business, and it is the right move as we progress towards profitability", Pini noted. Revenue rose 2 percent to 50.5 trillion won. Samsung said in a statement (via BGR). The company claimed a quarter net income of KRW7.49 billion (US$6.7 billion), beating analysts' predictions by 10.6 percent.

The reason is none other than that of the position of this Samsung Galaxy S8's Home button which moves slightly in position and is not fixed in the same section of the screen.

The first quarter is typically a slow season for chipmakers but market circumstances were especially favorable for companies like Samsung that are positioned to quickly and efficiently mass produce microchips.

The report also detailed Samsung's mobile unit had locked in KRW2.07 trillion (US$1.83 billion) in operating profits, while the chips unit totaled in at KRW6.31 trillion (US$5.6 billion). Samsung Electronics kicked off sales of the new flagship phone, the Galaxy S8, last week hoping it could recover its reputation with the premium smartphone with a curved screen. The S8 and S8 Plus with larger screens went on sale last week with strong pre-orders.

Operating profit was 9.9 trillion won (8.77 billion USA dollars) in the January-March quarter, up 48.27 percent from a year earlier.

The solid earnings came after Samsung Electronics chief Jay Y. Lee was arrested in February over his alleged role in a corruption scandal that led to the ouster of President Park Geun-hye. The trial is expected to continue for several months.

"Ever since we opened the Galaxy S8 and S8 Plus to the public, they are... associated [with] credibility in the market and highly praised for their superiority", he said during Samsung's April 26 earnings call. In a recent screen test, SquareTrade, a company that sells gadget-repair plans, found Galaxy S8 screens to "extremely susceptible to cracking when dropped from any angle" due to an all-design body it features. It said such a change carried more risks than benefits.

The second coming of the big-screen smartphone would feature a smaller, less powerful battery - reduced from 3500mAh to 3200mAh - and would launch at a 30 per cent discount, pricing the phone at $825.

The shares initially fell on Samsung's announcement that it would not pursue a holding company, but jumped to a record high when the company said separately that it planned to cancel 40 trillion won of treasury shares in two stages.

  • Arturo Norris