South Korean tech giant Samsung Electronics Co. Ltd (OTCMKTS:SSNLF) looks likely to unseat rival US giant Apple Inc’s (NYSE: AAPL) second quarter results, after it posted record breaking earnings, despite the bribery scandal and exploding battery crisis for its Galaxy Note 7.
The company attributed the huge sales of its new Galaxy S8 smartphone and demand for its memory chips for the rise April-June. It has also penciled in another blockbuster report for the current quarter to September.
Operating profit rose 72.9% from the previous year to 14.07tn won (£9.6bn), compared with consensus forecasts of $10.6bn (£8bn) for Apple, which is due to report next week.
Best quarterly results in five years
The world's top maker of smartphones and memory chips also said net profit surged almost 90% to 11.05tn won, its best quarterly result in five years.
It looks like Samsung may have overcome the recall of its flagship Galaxy Note 7 smartphone, which cost billions of dollars and damaged its reputation. The South Korean company is set to unveil its new Galaxy Note 8 in August.
Its semiconductor business took in 8.03tn won in operating profit in the second quarter, up 204% from the previous year. Samsung supplies its chips to other companies including Apple.
"The components businesses drove significant earnings growth ... thanks primarily to strong memory demand for high-density DRAMs and SSDs for servers," the company said.
It has also been hit by a scandal that has seen vice-chairman and heir Lee Jae-Yong charged in connection with the sprawling corruption scandal that brought down South Korean president Park Geun-Hye.