Samsung: Profits up 44% thanks to Galaxy S21

Samsung Electronics posted a significant jump in its first quarter 2021 results, driven by strong smartphone sales, which offset lower profits at its semiconductor division.

On Wednesday, the company announced sales forecasts of 65 trillion won (48.75 billion euros) for the quarter, with profit of 9.3 trillion won (6.9 billion euros), correspondent respectively to an increase of 17.48% for profits and 44.19% for sales.

The mobile division led the growth, largely thanks to the launch of the Galaxy S21 in January. The launch took place this year a month early, compared to the usual launch dates for this range of smartphones. Samsung had previously announced that the S21 series was selling even faster than the S20 series.

Semiconductor division shrinks

The “Digital Medial” division, which concerns consumer electronics, and in particular televisions and household appliances, should also benefit from continued demand, following the pandemic, during the quarter.

The semiconductor division, meanwhile, is expected to post its lowest profit in years, despite strong demand for chips globally. According to experts, its profitability has been hampered by the costs of running its facilities, including the application of UVR and the one-month shutdown of its plant in Austin. But, as the price of memory has increased, the results of this division should recover in the second quarter, adds the company.

Samsung will report its full quarterly results at the end of the month.

For its part, LG Electronics also expects a similar increase in its profits for the quarter. The company expects 18.8 trillion won (14.1 billion euros) in sales and operating profit of 1.510 trillion won (1.13 billion euros), an increase of 27.7 percent and by 39.2%, respectively.

Source: .com

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