LG Electronics sees slight profit increase in Q2

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With leader jailed, Samsung reports record $9.7 billion profit

South Korean tech giant Samsung Electronics on Thursday reported a second quarter net profit of 11 trillion won ($9 billion), up 89 per cent year-on-year, the company said in a statement here.

Operating profit was 14.07 trillion won (12.64 billion USA dollars) in the April-June quarter, up 72.72 percent from a year earlier, the regulatory filing showed on Thursday.

Samsung is also upbeat about its business in the second half of the year.

Manufacturers are packing more and more memory storage capacity into ever smaller mobile gadgets, as increased use of mobile applications, connected devices and cloud computing services drive up demand and consequently prices for memory chips, an area dominated by Samsung.

"It was a great quarter for Samsung, fueled by sales of the Galaxy S8 smartphone", said Holger Mueller, vice president and principal analyst at Constellation Research Inc.

Samsung Electronics said it expected the memory chip boom to continue in the current quarter.

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Looking ahead, Samsung said its third quarter profit may decline as its upcoming launch of the latest iteration of the Galaxy Note series would boost marketing expenses. Both Samsung and SK Hynix are expected to report all-time high profits this year.

The chip unit achieved this performance thanks to strong demand for high-density DRAMs and SSDs for servers in a low-supply environment.

The company released its financials for Q2 today and the company earned $54.8 billion total with $12.6 billion in profit.

This month the firm said it will invest 20.4 trillion won by 2021 to expand and upgrade its chip plants in the South Korean cities of Pyeongtaek and Hwaseong.

Almost 60% of Samsung's quarterly income was generated by its semiconductor division, which booked eight trillion won in operating income on sales of 17.6 trillion won.

The tech firm's smartphone unit posted 30 trillion won in consolidated revenue and 4 trillion won in operating profit for the second quarter. "As these [cloud infrastructure] players grow, they will only need more chips and that helps Samsung".

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