In contrast to LG‘s heart-aching departure from the smartphone market, Samsung might encounter a jump in its first-quarter profit. Robust sales of Samsung’s smartphones majorly contributed to the profit, followed by TVs and home appliances sales. Its chip division, however, projects a comparably lower figure due to the production suspension at its US plant.
Samsung smartphones and the contribution to its first-quarter profit
Samsung Electronics Co Ltd might witness a 45% incline in its January-March profit, Reuters reports. With this, around 16 analysts from Refinitiv SmartEstimate expect Samsung’s operating profit in the first quarter to rocket to 9.3 trillion won ($8.1 billion). If the prediction comes true, the figure would become the first highest operating income level for the first quarter since 2018. Accordingly, Samsung’s revenue is expected to jump by 12%.
While the forecasts on Samsung’s first-quarter result are projecting promising results, the South Korean tech giant will commence with the official announcement on Wednesday.
Samsung: more than smartphones
According to Reuters, Samsung is estimated to have conquered roughly 23% of the global market in the quarter. Counterpoint Research correlates the success to cheaper premium devices sales and high-margin accessories like Galaxy Buds. Additionally, analysts said a more than 1 trillion won operating profit jump for Samsung’s accessories is not impossible.
In comparison to the prediction, Samsung managed to log 20% market share in the same quarter a year ago and 16% market share in the previous quarter.
Its semiconductor division, though, might be a little bit struggling than the others. The division may suffer from a 3.5 trillion fall, roughly a fifth of its previous record. Several reasons might have contributed to the loss. The division had to withhold the cost of ramping up new production. The recent winter storm in Texas also caused significant losses at its local factory. As of late March, the production at the plant has just returned to near-normal levels.
Read also: LG Officially Quits the Smartphone Market
Follow and join us on Youtube, Instagram, Facebook, and Twitter to be part of the trader community in Asia
