Samsung Electronics CEO Steps Down During 'Unprecedented Crisis'

Samsung Electronics CEO Steps Down During 'Unprecedented Crisis'

The technology giant estimated operating profit for the third-quarter nearly tripled to 14.50 trillion Korean won or $12.8 billion from 5.20 trillion won previous year.

Brisk sales of the latest Galaxy Note 8 smartphone, launched in mid-September, further helped lift its mobile profit as it recovered from last year's costly withdrawal of the fire-prone Note 7, analysts said.

Analysts said the better-than-expected performance for the mobile arm is attributable to the market's positive reaction to the Galaxy Note 8 flagship, while the refurbished edition of the Galaxy Note 7, dubbed the Galaxy Note FE, sold out in South Korea, shipping 400,000 units.

"The company has been riding a global semiconductor boom", he said, adding the semiconductor business alone is believed to have contributed 10 out of the 14.5 trillion won operating profit.

Samsung Electronics Co Ltd said on Friday its CEO and Vice Chairman Kwon Oh-hyun had made a decision to step down from management, as it forecast record third-quarter profits on the back of soaring memory chip prices. The company said it will announced its final third quarter results later this month.

Profits are expected to continue to rise, analysts say.

Samsung is way ahead of rivals in technology updates in its memory business; last month it began producing 128GB eUFS for vehicle systems.

The consumer electronics division will also benefit from strong seasonal demand, he added.

Revenue likely rose 29.7 percent from a year earlier to 62 trillion won, Samsung said in a regulatory filing.

Industry watchers, meanwhile, said the absence of Samsung's top leaders cast a cloud over the company's long-term strategy.

Kwon has been working as de facto head of the company following the imprisonment of the Samsung heir Lee Jae-yong. Lee was given a five-year jail term, although he has appealed the case. Samsung announced its earnings guidance before the market opened Friday.