Samsung Says Q1 Profit Likely Rose 44 Percent Due to Sales Surge in Smartphone and TVs, Matching Expectations

0

Samsung Electronics on Wednesday mentioned first-quarter revenue possible rose 44 p.c, with analysts attributing the surge to brisk gross sales of smartphones and TVs, albeit tempered by a possible fall in chip earnings after a storm halted US output.

The South Korean expertise big forecast January-March working revenue of SKW 9.Three trillion (roughly Rs. 61,940 crores), matching a weighted common analyst forecast from Refinitiv SmartEstimate.

Analysts mentioned Samsung’s cell division possible noticed working revenue soar greater than SKW 1 trillion (roughly Rs. 6,660 crores) to about SKW 4.15 trillion (roughly Rs. 27,630 crores) after its flagship Galaxy S21 smartphone collection outsold the earlier model by a two-to-one margin within the six weeks since its January launch, in line with analysis supplier Counterpoint.

A decrease beginning worth for the flagship helped gross sales for the world’s largest smartphone maker throughout the quarter, with the S21 priced $200 (roughly Rs. 14,900) decrease than the S20, Counterpoint mentioned.

Revenue in Samsung’s tv set and residential equipment enterprise additionally possible greater than doubled to round SKW 1 trillion (roughly Rs. 6,660 crores), analysts mentioned, as a consequence of continued stay-at-home demand.

Cross-town TV and residential equipment rival LG Electronics on Wednesday introduced its largest-ever preliminary quarterly working revenue of SKW 1.5 trillion (roughly Rs. ,990 crores) for January-March.

In Samsung’s chip division, analysts mentioned revenue possible fell 20 p.c to SKW 3.6 trillion (roughly Rs. 24,000 crores) as a consequence of the price of ramping up home manufacturing in addition to losses at its Texas plant following a mid-February stoppage, blunting the advantages of sturdy demand.

US reminiscence chip peer Micron final month forecast third-quarter income above analyst estimates as a consequence of rising demand caused by a world shift to distant work.

The worth of DRAM chips broadly utilized in laptops and different computing units rose 5.Three p.c in January-March from the earlier three months, confirmed knowledge from TrendForce. Analysts anticipate that pattern to proceed as a world chip scarcity spurs on consumers to snap up provides.

“Costs are prone to rise additional within the present quarter as a consequence of stable demand for servers,” mentioned analyst Park Sung-soon at Cape Funding & Securities.

Chip curiosity

When Samsung publicizes detailed earnings later this month, “there will likely be curiosity find out how a lot Samsung is struggling when it comes to low yields in its non-memory enterprise, along with the extent of the losses in Texas and the US strain to extend chip funding,” Park mentioned, referring to the variety of non-memory chips that move high quality assessments.

Analysts have estimated that Samsung will make investments about SKW 10 trillion (roughly Rs. 66,560 crores) in its chip contract manufacturing enterprise this 12 months, in comparison with about SKW 6 trillion (roughly Rs. 39,970 crores) final 12 months.

Two high White Home aides are set to host a gathering on April 12 with chipmakers and automakers in attendance on the state of the US provide chain, Reuters beforehand reported. Samsung is contemplating a brand new $17 billion (roughly Rs. 126,450 crores) chip plant in america.

Samsung additionally mentioned, in a preliminary earnings launch with out providing any breakdown of the figures, that income possible rose 17 p.c from the identical interval a 12 months previous to SKW 65 trillion (roughly Rs. 4,32,990 crores).

Its share worth traded down 0.2 p.c after the discharge versus a 0.2 p.c rise within the benchmark KOSPI. The inventory has risen about 6.2 p.c thus far this 12 months versus the KOSPI’s 8.Eight p.c.

© Thomson Reuters 2021


What’s the finest cellphone below Rs. 15,000 in India proper now? We mentioned this on Orbital, the Devices 360 podcast. Later (beginning at 27:54), we converse to OK Laptop creators Neil Pagedar and Pooja Shetty. Orbital is accessible on Apple Podcasts, Google Podcasts, Spotify, and wherever you get your podcasts.

LEAVE A REPLY

Please enter your comment!
Please enter your name here