It's that time of the... quarter. 2018 Q1 financial reports are being published by most of the big tech names, and Samsung is likely pretty pleased with its performance so far this year. It isn't quite as high as the impressive 2017 Q4 results it previously posted, but it's sitting pretty with a total of KRW 60.56 trillion ($56 billion) in revenue, with KRW 15.64 trillion ($14.51 billion) in operating profit. That's a revenue increase of 20% and an operating profit increase of over 50% compared to Q1 2017, beating expectations.
A glut of Samsung's earnings came from continued demand in memory as well as its overall semiconductor foundry efforts. A recent drop in flexible OLED demand, combined with "competitors' increased production capacity" (i.e., LG), made a bit of a ding in the company's Display segment. That was tempered, though, by the continued sales of Galaxy S8 devices, as well as the launch of the Galaxy S9.
In the coming months, Samsung expects memory demand to continue—much to the chagrin of aspiring PC builders everywhere. The Display segment similarly foresees a continued lack of flexible OLED demand, while larger format displays, such as televisions, will be in oversupply—though its new QLED TVs might make a positive dent in things. Samsung also warns investors to expect a decline in profitability for its mobile devices in the face of rising high-end competition.
For the immediate future, Samsung seems to be confident that OLED demand will increase again, and it expects to continue cashing the proverbial DRAM check as the mobile and server markets remains hungry (no matter how much I really want to build a new computer without paying $500 in RAM). Other buzzword-filled long-term plans include "AI" and "5G," which are sure to pan out.
Following the news, Samsung's stock rose 3.45% for the day to KRW 2,607,000/$2,418.86 (at the time of writing).