Samsung Electronics Aiming to Make Its Biggest Yearly Sales and Operating Profits in 2017

Samsung Electronics is challenging itself to have its greatest yearly performance in this year and its goal is to make $197 billion (230 trillion KRW) and $34.2 billion (40.0 trillion KRW) in sales and operating profits respectively in this year. These values will surpass Samsung Electronics’ biggest yearly sales in 2013 when it made $196 billion (228.7 trillion KRW) and break its operating profits in 2013 when it made $31.5 billion (36.8 trillion KRW).

According to Samsung Electronics and stock markets on the 24th, it is estimated that Samsung Electronics’ operating profits will surpass $34.2 billion (40.0 trillion KRW) which will be its biggest yearly operating profits ever. It is hoping to achieve this goal by strengthening its profitability through improvement of competitive edge in products and positive performance for its components businesses that are based on semiconductors.

It is predicted that increase in number of demands for high-value products is expected for semiconductors due to increase in number of demands, expansion of AI (Artificial Intelligence) and IoT (Internet of Things) fields. Because Samsung Electronics possesses high-tech processing technologies and superiority in competitive edge of high-value products, it will be easy for Samsung Electronics to increase its profitability. Stock industries are estimating that Samsung Electronics will make between $17.1 billion and $18.8 billion (20.0 trillion KRW and 22 trillion KRW) in operating profits on its semiconductor businesses.

It is estimated that Samsung Electronics’ display department will make more than $4.28 billion (5.00 trillion KRW) in operating profits in this year which is twice the amount of operating profits in 2016 due to increase in number of supply of OLED panels and improvement in profitability of LCD.

Samsung Electronics’ IT and Mobile (IM) sector, which was going through tough time due to discontinuation of Galaxy Note 7 in last year, is looking to recover its performance by putting out its next strategic Smartphone called Galaxy S8 and others. By doing so, it is planning to make about $11.1 billion (13.0 trillion KRW) in operating profits in this year which is about 20% increase compared to last year. It is estimated that Samsung Electronics’ CE (Consumer Electronics) sector will make about $2.57 billion (3.00 trillion KRW) which is similar to last year through QLED TVs that will be introduced for the first time in this year and premium household appliances.

Samsung Electronics made $7.88 billion (9.22 trillion KRW) in operating profits during fourth quarter of 2016. It is estimated that its yearly operating profits in 2017 will surpass $34.2 billion (40.0 trillion KRW) and become Samsung Electronics’ biggest yearly operating profits ever. Picture of Samsung Electronics’ semiconductor exhibition room at Giheung Campus. Staff Reporter Yoon, Seonghyeok | [email protected]

Samsung Electronics’ semiconductor department will focus on increase in sales of high-value memories and continue to push for changing their processes towards 10-nano-level DRAM and 64-layer V-NAND. Samsung Electronics’ System LSI is planning to increase its profitability by focusing on diversification of its customers, increase in supply of high-value products, and supply of 10-nano products.

Samsung Electronics’ display department will focus on increasing amount of supply of high-value flexible products for its foreign customers and improving profitability of its LCDs. IM sector will push for increase in sales of premium products by recovering trust from its consumers and differentiating its designs and functions and applying AI to its products.

CE sector is planning to increase its profitability by selling premium products such as QLED TV and Family Hub 2.0 Refrigerator and increasing amount of B2B investments for household appliances.

“Price of memory semiconductors is rising very rapidly and it seems that phenomenon where there are excess demands for OLEDs will continue to happen.” said Noh Geun-chang who is a researcher for HMC Investment Securities Co., Ltd. “Samsung Electronics’ operating profits in 2017 will surpass its biggest operating profits that happened in 2013 when it made $37.7 billion (44.0 trillion KRW).”

IBK Investment Securities Co., Ltd. is also estimating that Samsung Electronics’ operating profits in 2017 will be around $37.0 billion (43.2 trillion KRW) due to super cycles of memories and OLEDs.

Despite of discontinuation of Galaxy Note 7 in 2016, Samsung Electronics made a steady performance by making $173 billion (201.87 trillion KRW) and $25.0 billion (29.24 trillion KRW) in sales and operating profits respectively. Samsung Electronics also voted on information that says that it will purchase $7.96 billion (9.30 trillion KRW) worth of treasury stocks and retire them.