Samsung, the world's biggest maker of memory chips, smartphones and TVs could be set to smash its annual profit record after better-than-forecast Q2 numbers. Kate King reports.
Proof that you can rise from the ashes, Samsung Electronics reporting a record profit in the second quarter bringing in around 12 and a half billion dollars. That, despite a tumultuous year. (SOUNDBITE) (English) HEAD OF CORPORATE DEVELOPMENT, 7IM, JUSTIN URQUHART STEWART, SAYING: "It's fascinating when you see what's happened to Samsung given the past history that we've had with the problem with some of its previous operations and products actually catching fire from time to time. The brand was in a real mess. So they spent an awful lot of marketing trying to pull that back. But the problem for them still is the brand. People question it and although Apple come up with products which may be the same or maybe slightly better but their brand still wins out. And Samsung still isn't trusted to the same level." Instead it was Samsung's memory chip business which led the way, a surge in demand and a supply shortage pushing prices up and widening profit margins. The company expects that boom to continue into Q3 Revenue was also boosted from sales from its OLED screens, which even its rivals can't do without. Apple is widely tipped to adopt the display for its next iPhone expected in the second half of the year. (SOUNDBITE) (English) HEAD OF CORPORATE DEVELOPMENT, 7IM, JUSTIN URQUHART STEWART, SAYING: "Of course because they're providing this to other providers. It just shows how ubiquitous they're becoming because they're in fact in the wonderful position of providing the other internal facilities for the other areas of technology." Samsung did report a slight fall in profit from its mobile division, attributing it to the higher component costs, which its chip business capitalized on. But sales of its new flagship Galaxy S8 were 15 percent higher than those of its predecessor. The only dim light then, the fate of the company's vice-chairman. Jay Y. Lee remains behind bars with a verdict on his corruption case due next month.