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...

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