Samsung expects strong profits thanks to chips, Galaxy S7 phone

If the global chip business continues to post robust performances, Samsung's annual operating profit may hover far above 40 trillion won this year coupled with smartphone sales, they added.

Although Samsung was left reeling by the Galaxy Note 7's exploding battery fiasco previous year, the company's mobile division contributed around 2 trillion won ($1.76 billion), thanks to strong sales of its Galaxy S7 series.

Friday was the first day people in South Korea could pre-order the Galaxy S8, Samsung's first major smartphone since the Note 7 fiasco.

Over at Samsung headquarters meanwhile, the company reported preliminary operating profit of 9.9 trillion won ($8.7 billion) for the first quarter of 2017, a jump of nearly 50% from a year ago.

While the 5.8-inch Galaxy S8 comes with a price tag of 935,000 won (US$826), the device can be purchased for as low as 631,400 won considering discounts provided by mobile carriers. Experts estimate Samsung to have earned more than 6 trillion won from chip business in the first quarter, beating 4.95 trillion won profit in the fourth quarter.

"Samsung will look to recover market share they lost past year and pump up volumes even if they have to spend more to do so", IBK's Kim said.

Samsung Electronics has today announced its earnings forecast for the first quarter of the fiscal year 2017.

Analysts now believe the main driver for profits this quarter was Samsung's semiconductor business.

The scandal involves Vice Chairman Jay Y. Lee and several top executives accused of bribery and embezzlement. After three months, the company has finally launched the phone India at a press event in New Delhi.

Following issues with the Note 7, the Korean company suffered its worst decline in smartphone sales, according to tech research firm Gartner.

Lee was arrested in February and appeared in a Seoul court on Friday.

Lee, who was arrested in February, has been charged with paying almost $40 million to the now-impeached president's close friend Choi Soon-Sil, allegedly as bribes to secure policy favours.

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