Samsung is on track to beat the $14.6 billion in profits it netted in Q1 2018. In its Q3 2018 earnings guidance, Samsung is forecasting an operating profit of $15.5 billion (17.5 trillion won) on the back of revenues of $57.5 billion (65 trillion won).
That’s a 20% uptick from the $12.8 billion it recorded in profit during the same period last year, and 6% more than Q1 2018. The launch of the Note 9 wouldn’t have hurt the bottom line, but we’ll have to wait until the last week of October to get a detailed breakdown of where the profits came from.
Samsung will reveal more details, including how each of its divisions performed, by the end of this month in its complete earnings report. According to some reports, though, the chip division is still its biggest business, thanks to strong demand from data centers for cloud computing. In addition, it’s been benefiting from a new production technology that allows the company to manufacture smaller and faster chips per silicon wafer.
While the chip division continues to do well, it remains to be seen if the company can reach even bigger numbers in the coming months. Chip prices are plummeting, and its upcoming foldable phones might not make a huge difference for its mobile business.
For now, it’s safe to say that Samsung’s chip business is a key growth driver — as it has been for a few quarters now.