The Korean tech giant is expected to record 50 trillion won ($46 billion) in operating profit this year. It is forecast to see 60 trillion won in operating margin in the coming year, according to local securities.
The key driver for the record earnings will continue to be its memory chip business, which toppled longtime No. 1 chipmaker Intel this year due to the supercycle of both dynamic random-access memory and NAND flash memory.
|The Samsung Family Hub smart refrigerator (Samsung Electronics)|
“Amid the growing trend of data-based computing, demand for server dynamic random-access memory is expected to rise 41 percent next year from this year,” said Lee Se-chul, a researcher at Citigroup Global Markets Korea Securities.
Samsung announced Thursday it had mass produced the industry’s first second-generation of 10-nanometer class, 8-gigabit DRAM. The new memory chip features an approximate 30 percent productivity gain over the company’s first-generation 10 nanometer-class, 8-gigabit DRAM, with its performance levels and energy efficiency improved by about 10 and 15 percent respectively, the company said.
“Through the rapid ramp-up of the 2nd-generation 10 nanometer-class DRAM, we will expand our overall 10 nanometer-class DRAM production more aggressively to accommodate strong market demand and continue to strengthen our business competitiveness,” said Jin Gyo-young, president of Samsung’s memory business.
As for Samsung’s mobile division, the firm is expected to unveil its new flagship smartphone Galaxy S9 with upgraded features compared to its predecessor Galaxy S8 at the upcoming Mobile World Congress.
The new flagship phone is predicted to sport the same Infinity Display and bezel-less design as the Galaxy S8 and Galaxy Note S8, but with thinner bezels. The Galaxy S8 came with an 84 percent screen-to-body ratio but the Galaxy S9 is expected to come with a nearly 90 percent screen-to-body ratio, meaning the front could be almost completely covered by panels.
The upcoming flagship smartphone is also expected to continue to have dual cameras and its camera will have optical image stabilization that produces photos that come out steady even if the camera shakes.
Meanwhile, Samsung’s consumer electronics unit will integrate connectivity and artificial intelligence technologies in its new home appliances to provide better customized and connected services to users. The tech firm is expected to showcase its new smart appliances and its vision of connectivity at the Consumer Electronics Show 2018 in Las Vegas next month, according to industry watchers.
To connect its devices beyond Samsung’s products, the tech firm has received the industry’s first Open Connectivity Foundation certification for its television, air conditioners and refrigerator. The OCF is an industry group that develops specification standards to connect devices made by different brands. Samsung plans to apply the OCF certification to all of its smart home appliances launched next year.
Samsung also aims to apply its artificial intelligence technologies and voice recognition Bixby into all its appliances. The firm launched the upgraded Bixby intended for home appliances in October. All of its smart TVs launched next year will have Bixby 2.0.