Samsung Electronics Revenue In 2017 Rose 19%, The Chip Business Accounted For 31%

January 31, although the memory chip prices have dropped than in the past, but Samsung's future mobile phones and other mobile products is still strong demand. Earnings report, Samsung Electronics fourth quarter operating profit up 64% year-on-year to 15.15 trillion won (about 141.38 billion US dollars), memory contribution to profits accounted for about 2/3 of 10.2 trillion won, compared with the same period in 2016 Grow more than twice.

Samsung's revenue for the full year of 2017 increased 19% YoY to 239.58 trillion won ($ 223.456 billion) and operating profit increased 83% YoY to 53.65 trillion won (about $ 50.039 billion). Including chip business revenue of 690 billion US dollars, accounting for 31% of total revenue, more than Intel's 63 billion US dollars last year, the company's overall revenue. Samsung's capital expenditures in 2017 amounted to 43.4 trillion won (about 405 billion U.S. dollars), accounting for 18.12% of the total revenue.

According to the performance of various departments, Samsung's operating profit in the semiconductor sector in the fourth quarter of last year increased by 120% to 10.9 trillion won (about 101.72 billion US dollars), operating profit in IT and mobile communications sector fell 3% to 2.42 trillion won (US $ 2.24 billion), showing panel operating profit increased 5% YoY to 1.41 trillion won (US $ 1.31 billion) and operating profit in equipment solutions segment increased 92% YoY to 12.20 trillion won (about 11.379 billion won) U.S. dollar), operating profit in consumer electronics increased 19% YoY to 0.51 trillion won (about 476 million U.S. dollars).

In addition, Samsung also forecast the first quarter of 2018 revenue: the data center-driven storage chip demand may offset the off-season impact of the upcoming release of the Galaxy S9 and other new devices is expected to improve profits, demand for solid state drives continue to grow, while NAND Equipment maintained strong demand throughout 2018, but OLED business may be adversely affected by the decrease in demand.

"No matter where Lee Jae-Yong, Samsung's top priority is to remain profitable in the face of uncertainties such as strong won and protectionism." Claire Kim, an analyst at South Korea's Daxon Securities, said before the earnings release, "After the earnings announcement, the belief in the future of the market will spread between investors."

In the meantime, Samsung today announced a 50: 1 split of its shares to "make it easier and pay dividends to a wider pool of investors." Samsung expects the liquidation of shares will enhance the liquidity of the stock, which will bring value to the enterprise in the long run. Samsung stock price rose up more than 8% after the announcement of the stock split.