Samsung Electronics Co. delivered its biggest-ever quarter of profits, shrugging off a year of tumult by leaning on its dominance as a supplier of electronics components that even its rivals can't do without.
Samsung said net profit jumped to 11.05 trillion South Korean won ($9.9 billion) for the three months ended June 30, an 89% rise from 5.85 trillion won for the same period a year earlier. Revenue shot up to 61 trillion won from April to June, rising from the prior year's second-quarter revenue of 50.94 trillion won.
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The South Korean technology giant blew past its previous record quarterly net profit of 8.24 trillion won, which came nearly four years ago as booming smartphone sales drove growth. In a shift from those days, components such as semiconductors and display panels, sold to competitors such as Apple Inc. or Sony Corp., now account for about 70% of the firm's bottom line.
Samsung's profits were also boosted by strong sales of the Galaxy S8, its first premium smartphone since last year's global recall of the Galaxy Note 7. The Galaxy S8 won strong reviews for its sleek design that packs a larger screen in a slimmer phone than prior premium models. Samsung said the Galaxy S8 and the larger S8+ have outsold its predecessor, the Galaxy S7, "in almost all regions."
The record-breaking results also position Samsung to top Apple in quarterly profits for the first time. Apple has a projected net income of $8.2 billion for the three-month period, according to analysts polled by S&P Global Market Intelligence, in what is traditionally a weaker quarter for the world's most-valuable company. Apple, set to launch its 10th-anniversary iPhone this year, is still projected to notch up larger full-year profits than Samsung.
Samsung Electronics shares are trading near all-time highs and have risen more than 60% over the past year.
Write to Timothy W. Martin at firstname.lastname@example.org and Eun-Young Jeong at Eun-Young.Jeong@wsj.com
(END) Dow Jones Newswires
July 26, 2017 20:47 ET (00:47 GMT)