LG and Samsung Both Estimate Record-Breaking Profit Runs for the First Quarter of 2017
Both LG and Samsung must be celebrating in full swing because both of these South Korean tech giants are on the run to report record-breaking profits for the Q1 2017 period. Though Samsung is poised to make a much higher profit than LG, the latter reporting a growth shows that not only has it made decent decisions, but there is also a healthy demand for its products. Let us check out more details to see what could be reasons for this growth.
LG Expected to Generate Operating Profit of More Than $800 Million – Samsung on Track to Report Second-Highest Quarterly Profit
According to the latest statistical data, LG’s operating profit is estimated at 922 billion won, which is equal to around $812 million (via The Korea Herald). The figure that you’ve read is much higher than market expectations and also represents an 82.4 percent increase when you compare the last period’s results. Under that contrast, LG has performed extremely well. Not only this, but the firm’s revenue has also increased as it generated 14.6 trillion won (around $12.8 billion) during the first three months of this year.
Comparing this figure to last year’s, the company’s revenue has gone up by 9.7 percent. In short, this is the second best quarter for LG in its history when you look at both operating profit and revenue. According to sources close to the matter, the company’s growth was due to its TV and home appliance businesses.
As for Samsung, its sales revenue is expected to be around 50 trillion won (around $44.09 billion), with operating profits at 9.9 trillion won ($8.73 billion). According to Samsung Newsroom, this is the company’s second-highest quarterly operating profit ever and it was beaten only by its 10.16 trillion won ($9.34 billion) figure, which was generated back in Q3 2013.
It is still interesting to see how well both companies will fare as far as its smartphone division goes. Both LG and Samsung have announced premium phones with high price tags but with the competition going tough, these new handsets need to have a long list of magic tricks up their sleeves to get the sales momentum going.