Samsung's new flagship yields record profit

Korean technology company Samsung published record results for its past quarter thanks to its successful Galaxy S8 launch. The flagship product and an increased chip demand helped the company soar.

Lower manufacturing costs

The second quarter turnover reached 60 billion won (46 billion euro) and the company profit grew to 14 billion won (11 billion euro), more than analysts’ expectations and a record high for the company. The increased profit is partially thanks to lower chip manufacturing costs but also because it has almost surpassed Intel as the world’s largest chip manufacturer. Samsung will publish its full financial results later this month.

The successful Galaxy S8 launch was the main reason for the excellent results. The smartphone is selling exceptionally well and boosted the company’s image after the Galaxy Note 7 fiasco. That device had to be recalled worldwide after it turned out the battery could catch fire or explode. The issue has turned the European Parliament’s gaze onto the issue and it now demands batteries to be replaceable in the future.

Thanks to these excellent results, Samsung may even have a larger profit than its competitor Apple, which analysts place at 10.5 billion dollars (9 billion euro). However, Apple is preparing the launch of a new iPhone in September.