Tuesday 02 October 2018 4:10 pm | Updated: Tuesday 21 May 2019 4:25 pm

Samsung to post record profit as chip market reaches its peak

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Samsung Electronics is expected to report a record high in quarterly profit on Friday, ahead of a predicted slide as chip prices begin to fall.

Consensus estimates as polled by Refinitiv have forecast an 18 per cent rise in operating profit to 17.2 trillion won (£12.04bn) compared to the previous quarter, while revenue is set to climb 3.7 per cent.

If confirmed, the news will see Samsung smash past its operating profit growth of six per cent in the previous quarter when its Samsung Galaxy S9 failed to meet debut sales targets amid high competition from cheaper Android models.

This quarter’s success will be largely due to a spike in sales of memory chips, of which Samsung is the world’s largest manufacturer. However this is expected to fall in future, as prices tighten globally.

The report comes as Samsung Electronics' chairman Lee Sang-hoon was indicted by South Korean authorities last week as part of an ongoing investigation into alleged workers' union sabotage.

Lee, who entered the role in March, will appear in court alongside 27 other senior executives from Samsung and its affiliates later this year.

Samsung's vice chairman, Lee Jae-yong, was released from prison on a suspended sentence earlier this year on corruption charges, related to the case against South Korea's impeached former President Park Geun-hye.