Shares in Samsung Electronics - South Korea's largest firm by value - rose as much as 2.8 percent to 2.2 million won in morning trade on the Seoul stock market.
Operating profit for the first quarter of 2017 increased by 48% from a year earlier to 9.90 trillion South Korean won ($11.7 billion). There was equally good news on the sales front as revenue for the quarter came in at 50.55 trillion won (£34.6bn), from 49.79 trillion won (£34bn) in the same year ago quarter.
This area was buoyed by price gains for both DRAM and NAND memory chips as supply growth constraints and demand for more firepower on devices such as smartphones and servers boosted margins, according to Reuters. Samsung, on the other hand, acknowledged the issue, tagging it as a software problem that can be corrected through an upcoming update. For the mobile business, market competition is expected to intensify in the second half.
-Dylan McGrath is the editor-in-chief of EE Times.
The new flagship smartphone and the global rollout of the Galaxy S8 and S8+ are expected to help the division increase revenue and profit.
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There is no doubt that the Samsung Galaxy S8 is probably the company's best smartphone that has been launched. The company spent 9.8 trillion won on facilities in the first quarter.
Despite the solid earnings, the company remains involved in a scandal, with chief Jay Y. Lee now on trial for alleged participation in a corruption case that brought down South Korean President Park Geun-hye.
Samsung suffered an embarrassing recall a year ago of its Galaxy Note 7 smartphone over exploding batteries, which cost the firm billions of dollars and dealt a blow to its reputation. After the Note 7 debacle, industry analysts and experts suggested that Samsung could pull down the Note lineup of phones due to a major amount of damage done to the Galaxy brand. There has been, so far, no clear word from Samsung on the matter. Samsung also announced plans to cancel existing treasury shares worth over $35 billion by 2018, accepting proposals submitted by activist hedge fund Elliott.
A Samsung spokesperson said the company can not comment on "the future product plan".
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