Samsung Profit Climbs on Memory Chips and Smartphone Displays

Samsung posted record earnings on robust demand for memory chips and sales of high-end displays for the iPhone X, according to Bloomberg. The company is splitting its stock as a “step to enhance shareholder value.“

Net income rose to a record 12 trillion won ($11.2 billion) in the three months ended December. Sales of memory chips and exclusive orders for the organic light-emitting diode screens in Apple’s most expensive phone have fueled component profits and helping offset the impact of a rising won.

Operating profit for the quarter was 15.15 trillion won on sales of 66 trillion won, Samsung said, confirming preliminary numbers released earlier this month. Samsung said a higher Korean currency reduced profit by 660 billion won, and that it anticipates a “negative impact“ from the fluctuations in the won and lower seasonal demand in the first three months of the year.

Operating profit from the chip division more than doubled from a year earlier to 10.9 trillion won. Spot prices for 4 GB DRAM chips surged 92 percent last year. Operating profit from display products rose to 1.41 trillion won and consumer electronics reported 510 billion won in profit.

The mobile division had profit of 2.42 trillion won. While Samsung remains the world’s biggest smartphone maker, it has fallen out of the top 5 in China and is being challenged by Xiaomi in India. Samsung plans to debut its new flagship smartphone, the Galaxy S9, next month.