Samsung Electronics makes a rapid recovery
The electronics company surprises by bouncing back with record profits after Galaxy Note 7 recall disaster and arrest of vice-chairman
Seoul — Sprawling South Korean conglomerate Samsung Electronics has recovered from a humiliating recall fiasco and the arrest of its de facto leader with remarkable speed, analysts say, after the tech company stunned investors with record-breaking profits. But the world’s top smartphone maker, one of the huge family-run chaebols that dominate the South Korean economy, will be confronted by tougher challenges in the future as Chinese rivals take aim at its semiconductor business and questions emerge over the firm’s leadership. Samsung took observers by surprise when it posted a forecast-beating 14.1-trillion won ($12.6bn) in operating profits in the second quarter — a 73% jump from the previous year — putting it on course to better rival Apple for the first time. Consensus forecasts of Apple’s operating profits are estimated at $10.6bn. Samsung said huge sales of its new Galaxy S8 smartphone and demand for its memory chips were behind the jump in the April-to-June period and predicte...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.