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Today Samsung announced the financial results for the first quarter that ended on March 31, 2017. Due to the increasing demand for smartphones, components as well as the fact that the company has a significant hold in several industries, it managed to report a very impressive result.

Samsung (KRX:005930)Q1 2017 Results See Increased Memory and Display Business But Decreased Flagship Product Sales – Company Could Have Performed Better in Smartphone Division

Total revenue generated by Samsung during this quarter was 50.55 trillion won ($48.5 billion), with total profits recorded at 9.9 trillion won ($8.7 billion), resulting in an increase of 3.22 trillion ($2.83 billion) won year-over-year. In contrast to the company’s Q4 2016 results, Samsung actually underperformed despite an increase of device shipments and keep in mind that the previous quarter was when the company was initially recovering from the Galaxy Note7 fallout.

In short, the majority of the profits generated were due to component sales, with the most coming from the tech giant’s semiconductor and display division. Samsung is currently the sole supplier of Apple’s OLED display technology, with a previous report stating that both of them have a signed a massive $4.3-billion-dollar deal so that might have contributed to the company’s earnings by a great deal. The company aimed at generating a profit of $8.8 billion in its forecast but missed that target by a small margin.

For the memory business, Samsung will look to maintain its profitability streak by increasing competition through DRAM and 64-layer V-NAND sales. There is also a possibility that the industry will increase 3D NAND chip supplies in the second half of this year. While the smartphone division was not the backbone of the company’s financial performance for this quarter, the company aims to make this category a healthy contributor in the future.

This will be achieved with increased production of the Galaxy S8 and Galaxy S8+ units and possibly the rumored launch of refurbished Galaxy Note7 units. Samsung will also be increasing production of 10nm wafers for SoC manufacturers to maintain profitability though it will have extended competitive periods with TSMC for its 10nm FinFET technology. However, the Korean manufacturer earlier announced its 10nm FinFET LPP process which will result in greater efficiency and performance, possibly leading to more demand for the company’s technology in the future.

Analysts have claimed that Samsung’s growth in the future is expected to slow down in 2018, but we feel that because of the command it has in several industries, it will still be able to maintain growth over the course of time.

What are your thoughts towards the company’s Q1 2017 financial performance? Tell us your thoughts down in the comments.

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