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giftedviz.com April 23, 2017


LG does better than expected

21 April 2017, 02:40 | Ross Houston

Profits are expected to have increased by a very big 48% and the company says the profit for Q1 2017 was likely $8.8 billion, or 9.9 trillion won.

Despite the predicted year-on-year profit increase, however, it looks like sales will be essentially flat: Samsung's Q1 2016 revenue was 49.78 trillion won.

Analysts are expecting Samsung's best-ever quarterly profit in the April-June period when the Galaxy S8 and S8 Plus launch.

Favourable memory market conditions will likely persist throughout 2017 due to diminishing production gains on investments and careful capacity management among chipmakers.

Lee Jae-Yong, the vice-chairman of Samsung Electronics, was brought into the Seoul Central District Court bound and handcuffed. The operating margin that measures the income against sales rose 6.5 percentage points on year to 19.8 percent in the first quarter.

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The company did not elaborate on its performance and will disclose detailed earnings in late April. An issue that caused Samsung's own Vice Chairman Jay Y. Lee to be arrested and he is now facing charges for bribing their former president Park Geun-hye.

Some researchers forecast the S8, which sports the largest screens for Samsung high-end smartphones to date, would set a new first-year sales record.

Lee's lawyer flatly denied the charges.

Prosecutors allege 48-year-old Mr Lee used more than £30m in company funds to bribe Ms Park to help ensure a smooth leadership transition at Samsung after his father suffered a heart attack in 2014.

It is thought that Samsung's semiconductor division is responsible for the better than expected financial results, and analysts predict that the company will see even more success in the second quarter of the year as hype over the firm's newest handset, the Galaxy S8, builds. (STAND UP) Lee was indicted at the end of February, and by law the district court must rule on the case by the end of May.



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