Samsung Electronics estimates 56% jump in profit

Samsung Electronics estimates 56% jump in profit

The new Samsung Galaxy S9 Plus mobile is shown during the Mobile World Congress in Barcelona, Spain February 27, 2018.

"The conservative outlook for the memory chip industry, which started in the second half of 2017, is likely to become groundless, due to the weaker-than-expected supply and the rising demand from the server segment", DB Financial Investment said.

The profit forecast from Samsung Electronics, the flagship subsidiary of the giant Samsung Group, widely surpassed the market consensus for about 14.6 trillion won. The company did not elaborate on its performance and will disclose detailed earnings in late April.

Even if DRAM price growth is at its peak, analysts said Samsung remained on track for record annual earnings. An early launch of the Galaxy S9, better sales of older devices because of the higher prices of the newest flagships, and a short-term reduction in advertisement expenditure.

On Friday, the company's share fell by 2.7 percent but rebounded again to close at a 0.7 percent loss.

The display business is believed to have been affected by the stagnant sales of Apple's iPhone X, as Samsung is the sole supplier of the smartphone's OLED screen.

However, there's just no keeping some people happy as Samsung shares fell 1pc shortly after the announcement was made, as analysts forecast slower demand for DRAM chip prices.

Samsung's mobile business is also expected to report a bigger-than-expected income for the first quarter.

"The Galaxy S9 series will face headwinds that are affecting all premium smartphone makers", research firm Strategy Analytics told Reuters last week.

In a separate development, prosecutors searched the offices of a Samsung's unit on Friday as part of a probe into allegations the conglomerate had sabotaged worker's efforts to set up stronger unions, Yonhap News Agency said.