Samsung Electronics saw its revenue and operating profit jump in the first quarter of 2021, driven by strong demand for its smartphones and consumer electronics products. The Korean giant’s net profit thus amounted to 7.1 billion won ($ 6.4 billion) for the January-March period, an increase of 46.2% year-on-year, while its profit of Operation jumped 45.5 percent year-on-year to 9.4 billion won in the first quarter as its revenue grew 18.2 percent to 65.4 billion won in the cited period.
Samsung management said strong sales of mobile products, digital devices and televisions offset lower chip profits, while the Asian giant’s mobile division was the biggest contributor to earnings at Samsung. operation of the company, in a context of increasing demand from the general public.
Samsung’s flagship Galaxy S21 and its consumer models like the Galaxy A series performed well. Tablets, PCs and wearable products also contributed to earnings growth, says Samsung.
Semiconductors at their lowest
The only problem: the performance of the semiconductor division is at its lowest in years, despite high demand. At issue: the disruptions in its plant in Austin, located in Texas.
Samsung’s logic unit, dubbed System LSI, saw increased supply of mobile SoCs and image sensors for phones, but profits remained stable due to difficulty in sourcing driver chips screen due to the Austin plant shutdown.
In the second quarter, however, the semiconductor division’s profits are expected to improve significantly due to strong demand in everything from 5G products to PCs and servers, the South Korean tech giant says. . The logical unit will also strengthen cooperation with Samsung’s foundry unit and outsource production during the quarter, Samsung management added.
The performance of its mobile division is expected to weaken due to the diminishing effect of new products and component shortages in the second quarter, says Samsung. The company said it would make solid profits in the second half of the year by popularizing the foldable device category and improving its 5G line aimed at the mass market.