Samsung Electronics announced that its operating profit for the last quarter jumped 64% pushing the tech giant’s annual sales and operating revenue to the highest levels in the company’s history. The South Korean company thanked its booming semiconductor business for the gains.
On Tuesday, Samsung offered a preview of its earnings report for October-December. The operating profit now stands at $14.1 billion, a significant increase from the previous year’s levels. However, the operating profit has missed analysts’ expectations due to the appreciation of the won against the U.S. dollar and a series of bonuses to its workers in December.
The company gave employees $655 million in bonuses over the last 12 months. The sales for the last three months jumped 24% to $61.8 billion, which marks the highest level in the company’s history.
The operating income in the last year hit $50.2 billion, which marks an 83% increase from 2016 levels. Also, annual sales saw a big rise (19%) to $224.2 billion. The company has not released the figures for the quarterly net profit. It promised to offer all the details by the end of the month.
Samsung Semiconductor Business Thriving
Analysts agree that business has been so good for Samsung due to its semiconductor unit. Its memory chips have sold like hot cakes due to a skyrocketing demand as the world needs more storage space for media files on devices and servers.
There is also a huge demand for more computing power which pushed the sales of Samsung memory chips to record-high levels. Samsung currently dominates the market as it produces more than half of DRAM memory chips and one-third of NAND memory chips sold worldwide.
DRAM chips boost computing power, while NAND chips are used for enhanced storage. The price of the memory chips saw a big jump last year but that did not shrink overall demand.
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