Samsung facing growing threats despite record profits


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The conglomerate of South Korea is distanced from a humiliating recall fiasco and the arrest of its de facto leader with remarkable speed, according to analysts, after the technology giant Dizzy investors with record profits.

But the world's first smart phone manufacturer, one of the huge family-run chaebols that dominate the South Korean economy, will face tougher challenges in the future, While Chinese rivals aim at its semiconductor activities and issues arise on the company's leadership.

Samsung took surprised observers this week when it posted an operating profit of $ 14.1 trillion ($ 12.6 billion) in operating profits in the second quarter – A 73% jump from the previous year – by improving Apple rival for the first time.

Consensus forecasts on Apple's operating profits, according to this week's report, are estimated at about $ 10.6 billion.

Samsung said that the huge sales of its new Galaxy S8 smartphone and demand for its memory chips were behind the jump in April-June and predicted another blockbuster report for the current quarter to September.

The company struggled to overcome an embarrassing reminder last year of its cell phone Galaxy Note 7's flagship battery on batteries, costing it billions of dollars and caused a serious blow to Its reputation.

"I would say that Samsung has crossed this corner fairly quickly, at least from a financial point of view," said Jan Dawson, chief analyst at Jackdaw Research.

Dawson noted the 28 percent increase in sales in Samsung's mobile division, in contrast to the 15 percent decline registered by the firm in the third quarter of last year when the crisis of Recall was at its peak.

The biggest engine of the rapid recovery was Samsung's semiconductor business, which recorded 8.03 trillion earnings from operating income in the second quarter, up 204% Compared to the previous year. Samsung provides tokens to other companies including Apple.

Geoffrey Cain, author of an upcoming book on the Samsung Empire, said the company was simply making the wave of "big investments in strategic industries like chipsets and panels OLED ", it has been years.

"Samsung has fruit plantations ready to be picked, although a few, like its Note 7, were rotten," Cain told AFP.

Rising global demand for semiconductors pushed high prices to the advantage of Samsung, said Chung Sun-Sup, an expert who runs the Chaebol.com site that tracks assets and practices Of the South Korean conglomerates.

"The company will appreciate the global semiconductor boom over the next few years," Chung said.

But the biggest challenge for Samsung is what happens after the harvest, while the company faces questions about its "untested" leader and the growing threat of Chinese rivals.



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