IT

Samsung’s first-quarter profit up 44%, meeting expectations

Samsung Electronics stated that its profits in the first quarter of this year rose mostly by 44%, and according to analysts, the rise was due to the increase in sales of smartphones and TVs, which experienced growth, albeit small, due to the decline in processor profits after the crisis that stopped American production of devices.

The Korean tech giant Samsung expects operating profit between January and March to reach 9.3 trillion Korean won (equivalent to $8.32 billion), which will make it meet the expectations of analysts who noted that the company’s smartphone division witnessed a rise in operating profit by more than 1 trillion won to 4.15 trillion won after sales of its flagship Galaxy S21 exceeded the sales of its previous version by doubling during the six weeks starting from its launch in last January.

The low starting price of the company’s flagship device helped boost its sales during the first quarter, as the S21 was about $200 lower than the S20. Samsung’s sales of TVs and home appliances more than doubled to nearly 1 trillion won due to continued demand as people stay at home, while home appliance and TV rival LG Electronics reported the largest preliminary quarter operating profit of 1.5 trillion won in the past year in the period between January and March.

As for Samsung’s processor division, analysts expect profits to fall 20% to 3.6 trillion won due to the increased production cost of the processors and the losses of its factory in Texas, which stopped operating in mid-February, reducing profits from increased demand for the processors.

According to the stock market, the company’s share fell by 0.2% after announcing its initial reports, compared to a 0.2% increase in the KOSPI index, and its share has witnessed a rise of 6.2% since the beginning of the year so far, while the KOSPI index increased by 8. 8%.

Related Articles

Back to top button