Samsung foresees profit record in 2nd quarter

Seoul-technology giant Samsung Electronics estimated a record operating profit for the second quarter, driven by an improvement in sales of memory chips, which analysts say will continue to raise margins by the end of the year. The world leader in the segment, and rival Apple in smartphones, said second-quarter operating profit probably reached 14 trillion won (12.1 billion dollars), compared with average estimate of 19 analysts in a survey by Thomson Reuters of 13.1 trillion won. The recipe probably went up 18% over the previous year to 60 trillion won, also a quarterly record, against the forecast of 59 trillion won from analysts. The South Korean company will detail the results at the end of July. The robust estimates reinforce the expectation that Samsung will have a record profit this year, fueled by a named memory chip superciclo. Analysts predict shortages of DRAM and NAND chips persists in the rest of this year, due to the limited supply and growing demand for more power of smartphones and servers. The screens of organic light emitting diode (OLED) are another engine of profit growth. The Samsung has a strong position in the market for next-generation curves screens, which can be used in the new Apple iPhones, to be released in October.