By CHARLES UGOCHUKWU CHARLES
Samsung is expecting to record second-quarter earnings courtesy of its growing memory chip business.
Their Korean company said that operating profit for the three-month period likely would come in at 14 trillion won (around £9.4bn), a 72 per cent increase year-on-year and higher than the 13.1 trillion won (£8.8bn) average expected by analysts.
Revenue is also expected to rise 18% from a year earlier to 60 trillion won (£40.2bn), versus analysts’ forecast of 59 trillion won (£39.5bn).
This, the company says, is thanks to an increase in strong memory chip prices, as well as an increase in demand. These chips are used in devices including PCs, smartphones and service, but the company has said that demand for cloud computing and artificial intelligence are the main drivers of this increased.
This week, the company stated plans to sink $18bn into its chip business in order to coagulate its place in the market. This investment comes after reports claimed that Samsung could be about to oust Intel as the world’s number one chip-maker for the first time in 25 years.
Samsung’s big increase in sales has been driven by a remarkable rise in DRAM and NAND flash average selling prices.