By Kate Brown
Samsung Electronics saw a record in profits for the fourth quarter in a row. Figures revealed net profits of £7.7 billion between January 2018 and March 2018, an increase of 52% from the year before.
Samsung Electronics reported a high demand for its memory chips and new Galaxy S9 smartphone. However, they warned of the prediction that future competition among high-end handset makers may hit future sales and profits. Analyst for mobile devices at IHS Markit, Jusy Hong, commented: “Samsung is facing competition from every direction, from Chinese-based OEMs in the low- and mid-end segment and from Apple in the high-end segment”.
The latest figures suggest that the company has recovered from a series of setbacks, including the global recall of its overheating flagship Note 7 smartphone in 2016. Whilst the results demonstrate the chips business is strong, Samsung offered no such reassurance for the smartphone industry. The Korean company said its own mobile division will see declining profitability amid weak demand and warned of softer demand for the screens used in Apple Inc.’s flagship iPhone X smartphone.