Strong demand for semiconductors used in servers helped Samsung report another record quarterly profit though the Korean firm noted that a weak global smartphone market would slow earnings growth.
The company also revealed that decreased demand for OLED panels used in smartphones could pose a challenge during the second quarter. However, as the world's biggest memory supplier, Samsung expects its chip business to remain its most profitable division.
The company provided further details regarding its expectations for the second quarter in a press release, saying:
“For the second quarter, Samsung expects the Memory Business to maintain its strong performance, but generating overall earnings growth across the company will be a challenge due to weakness in the Display Panel segment and a decline in profitability in the Mobile Business amid rising competition in the high-end segment.”
Samsung's chip business managed to bring in a record 11.6 trillion won operating profit during the period from January to March of this year which is up from 10.9 trillion won in the previous quarter.
The company also believes that the US government's decision to ban US firms from doing business with China's ZTE could be beneficial to its memory business in the future. If ZTE is unable to purchase chips from Qualcomm as a result of the ban, the Chinese firm could turn to Samsung for the memory used in its mobile phones.
Samsung's mobile division also saw an 82 per cent increase in quarterly profit to reach 3.8 trillion won and the firm attributes this turn around to the success of its latest flagship phone, the Galaxy S9.
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