Samsung says Q1 profit likely to rise due to jump in smartphone and TV sales

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Samsung Electronics said on Wednesday that first-quarter profit was likely to rise 44 percent, with analysts attributing a jump in brisk sales of smartphones and TVs, albeit mitigated by a likely drop in chip profits after a storm halted production in the United States.

The South Korean technology giant forecasts an operating profit for January-March of 9.3 trillion SKW (approximately 61,940 kroons), which corresponds to the weighted average forecast of the analyst from Refinitiv SmartEstimate.

Analysts said On Samsung the mobile division probably saw operating profit jump by more than 1 trillion SKW (approximately 6,660 kroons) to about 4.15 trillion SKW (approximately 27,630 kroons) after its flagship Galaxy S21 The smartphone series outpaced the previous version by two to one in the six weeks since its launch in January, according to research provider Counterpoint.

The lower starting price of the flagship helped sales of the largest smartphone maker in the quarter, with the S21 priced at $ 200 (approximately Rs 14,900) lower than the S20, Counterpoint said.

Profits in Samsung’s TV and home appliances business also likely doubled to about 1 trillion SKW (approximately 6,660 kroner), analysts say, due to continued demand for the home.

Rival for TV and household appliances LG Electronics on Wednesday announced its largest ever preliminary quarterly operating profit of 1.5 trillion SKW (approximately Rs., 990 crore) for January-March.

At Samsung’s chip division, analysts say profits are likely to have fallen 20 percent to 3.6 trillion SKW (approximately Rs 24,000) due to domestic production costs and losses at the Texas plant after a shutdown in mid-February. which dulls the benefits of strong demand.

Connection to an American memory chip Micron last month’s forecast for the third quarter above analysts’ forecasts due to growing demand caused by the global shift to teleworking.

The price of DRAM chips, widely used in laptops and other computing devices, rose 5.3% in January-March from the previous three months, according to TrendForce. Analysts expect this trend to continue, as the global shortage of chips encourages buyers to snatch supplies.

“Prices are likely to rise further this quarter due to strong server demand,” said analyst Park Sung of Cape Investment & Securities.

Interest rate chip

When Samsung announced detailed gains later this month, “it will be interesting to see how much Samsung is struggling with low yields in its non-memory business, in addition to the level of losses in Texas and U.S. pressure to increase investment in chips, “Park said, citing the number of memoryless chips that pass quality tests.

Analysts estimate that Samsung will invest about 10 trillion SKW (approximately Rs. 66,560 crore) in its chip business this year, up from about 6 trillion SKW (approximately R 9,399 crore) last year.

Two of the White House’s top aides will host a meeting on April 12 with chipmakers and carmakers present at the state of the U.S. supply chain, Reuters reported earlier. Samsung is considering a new $ 17 billion (approximately Rs. 126,450 crore) chip factory in the United States.

In the preliminary edition of the profit, Samsung also stated that it did not offer a breakdown of the figures, that revenues probably increased by 17 percent from the same period last year before 65 trillion SKW (approximately 4,322,990 kroons).

Its share price was trading at 0.2% after the release against the background of 0.2% growth in the benchmark KOSPI. Shares have risen about 6.2 percent so far this year from 8.8 percent of KOSPI.

© Thomson Reuters 2021

Which is the best phone under Rs. 15,000 in India right now? We discussed this on Orbital, the Gadgets 360 podcast. Later (starting at 27:54) we talk to OK Computer creators Neil Pagedar and Puja Shetty. Orbital is available at Apple Podcasts,, Google Podcasts,, Spotifyand wherever you get your podcasts.



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