Samsung expects 44 per cent more profit from the first quarter. The Korean company sold especially more smartphones and television sets.
A cheaper smartphone
According to preliminary results, Samsung Electronics announces that its profits increased by 44 per cent in the first quarter. These numbers are well in line with forecasts. The South Korean technology giant predicts an operating profit of 9.3 trillion won (about 7 billion euros) for the period from January to March, which according to Reuters, also corresponds to the average predictions of analysts.
Smartphone sales in particular soared. After the launch of the new Galaxy S21, sales doubled compared to the previous model launched in January. In the first six weeks of the launch of the S21, the smartphone division was able to record nearly one trillion (1,000 billion) won more in gross profit, compared to the launch of the previous model. The fact that the new model is about 200 dollars cheaper than the previous model appears to be a selling point.
Competitor backs out
Samsung was also able to double its profits on television sets and household appliances. In total, the manufacturer expects 17 per cent more turnover compared to the same period a year earlier. Only the chip division was hit – profit probably fell by 20 per cent – due to an increase in production costs and a storm in a key factory in Texas, which led to work being halted for a certain period.
Still, analysts expect chips to become more expensive, as shortages are just around the corner while global demand continues to rise, which will boost Samsung’s profits. Prospects in the smartphone market are also good, as rival and fellow townsman LG Electronics throws in the towel and stops producing smartphones.