Samsung says profits are rising, but smartphone competition is fierce


The South Korean conglomerate stated Wednesday that it likely made about 9.3 trillion Korean gained ($8.3 billion) in working revenue from January to March, marking a 44% bounce in comparison with the same period final yr.

It additionally anticipated gross sales to have climbed about 17% year-on-year, to roughly 65 trillion Korean gained ($58.2 billion). The preliminary outcomes had been roughly in keeping with estimates forecast by analysts polled by knowledge supplier Refinitiv.

Samsung’s semiconductor plant in Austin, Texas was compelled to close down in February after the state was hit by widespread energy outages associated to an enormous winter storm, however “reached production close to normal levels as of end of March,” based on a press release from the corporate.
Samsung says profits are rising, but smartphone competition is fierceSamsung says profits are rising, but smartphone competition is fierce

Analysts estimate that the disruption price the corporate about 400 billion Korean gained ($358 million). That’s assuming that 100,000 semiconductor wafers “were discarded,” based on Jae-yun Lee, an analyst at Yuanta Securities.

The suspension struck at a very unlucky time: the worldwide chip trade has been grappling with a provide crunch for months, with many gamers failing to keep up with demand.
Last month, Samsung (SSNLF) co-CEO Koh Dong-jin told investors that the tech big was having bother with its provide chain. The firm was scrambling to handle the dearth of semiconductors, and will proceed to face issues within the second quarter, he added.

But because the state of affairs in Austin continues to enhance, recovering output “should start to drive earnings growth for” Samsung’s chip division, CW Chung, an analyst at Nomura, wrote in a be aware to purchasers on Wednesday.

Nomura’s analysts additionally anticipate a rise in costs for sure semiconductor elements within the second quarter, which they imagine might assist increase the corporate’s leads to the approaching months.

Samsung Galaxy S21 smartphones: smarter, cheaper but don't come with a chargerSamsung Galaxy S21 smartphones: smarter, cheaper but don't come with a charger
Samsung smartphones are anticipated to shine, too. The firm released its new Galaxy S21 gadgets this January, sooner than ordinary, and its “momentum” within the area “should stand out,” Lee wrote in a current analysis be aware previewing first quarter efficiency.

Samsung didn’t break down its earnings in its preliminary launch. The firm will report full outcomes later this month.

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