Samsung foresees bigger profit in 2017 as memory chips soar

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Samsung has released its first quarter financial results for this year and it shows interestingly that the South Korean tech company have ridden a good path of the Galaxy Note 7 fiasco.

In an investor call held before the release of its first quarter earnings for the fiscal year 2017, Samsung stated there was nothing wrong with the device and the error was caused due to the Super AMOLED display having a natural tendency of having differences in color.

In the first quarter, Samsung's net profit rose 46 percent to 7.68 trillion South Korean won or $6.8 billion from 5.25 trillion won for the same period a year earlier.

Revenue increased 2 percent to 50.55 trillion won from 49.78 trillion won in the previous year.

Samsung shares gained 2% in Thursday morning trading in Seoul.

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The mobile division reported January-March operating profit of $1.82 billion, down from $3.4 billion year earlier. "Against this backdrop, the company will strive to maintain profitability through robust sales of the Galaxy S8 and S8+ and the launch of a new flagship smartphone in the second half". Even though the first quarter is typically a slow season for chipmakers, tight global supplies and strong demand for microchips for computers, data servers and mobile devices led to a record-high profit.

Samsung rejected a call from USA activist hedge fund Elliott to split itself in two but accepted part of the fund's proposals on Thursday, revealing plans to cancel its existing treasury shares worth over $35 billion by 2018. Users have taken to the xda-developers forums and Samsung's own community site to complain about the Galaxy s8 restarting unexpectedly.

Samsung faced a major crisis past year due to the suspension of the flagship Galaxy Note 7 smartphone amid reports that some of its devices caught fire while charging. Also during this time, the company was involved in a bribery and corruption scandal involving the, now impeached and imprisoned, president of South Korea.

In addition to earnings results, Samsung unveiled a set of announcements related to the company's corporate structure and shareholder returns.

Samsung has been struggling to promote the Galaxy S7 to recoup losses from the ill-fated Galaxy Note 7 smartphone. Samsung also announced plans to cancel existing treasury shares worth over $35 billion by 2018, accepting proposals submitted by activist hedge fund Elliott.

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