Samsung forecasts monster $8.7bn operating profit for Q1

7 Apr 2017

Samsung Electronics wireless division president Dong-Jin Kim introducing the Galaxy S8 and S8 Plus. Image: Samsung

Korean tech giant is clawing its way out of the Note7 hole and other recent debacles.

In its Q1 earnings guidance, Samsung is predicting an operating profit of around 9.9trn won ($8.7bn) out of 50trn won ($44bn) in revenues.

This would see profits increase 50pc on the performance during the same period in 2016.

The past year has been a tough one for Samsung overall, from the Note7 exploding battery debacle to the arrest of its vice-chairman Jay Y Lee over bribery allegations.

Will the S8 wipe away Samsung’s bad memories?

In recent weeks, the Korean tech giant unveiled its new flagship smartphone: the Samsung Galaxy S8.

The earnings and the hype around the S8 show that Samsung is steadily crawling its way out of the hole caused by the recall of thousands of Note7 smartphones, which caught fire.

As we said before, consumers are fickle and once Samsung starts dangling shiny new phones before their eyes, all will be (kind of) forgotten.

Last week, Samsung took the wraps off its pivotal S8 device.

“The Galaxy S8 is our testament to regaining your trust by redefining what’s possible in safety, and marks a new milestone in Samsung’s smartphone legacy,” said DJ Koh, president of mobile at the company.

The S8 will come in two bezel-less screen (‘Infinite Display’) sizes of 5.8in and 6.2in, with no physical buttons.

Another new addition is Samsung’s personal AI assistant, Bixby.

Samsung opened up pre-orders on 29 March and these devices will be received from 20 April. It will go on general sale in Europe on 28 April.

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years