Samsung expects significant profit growth for Q1 / 21

Because the smartphone business is booming, the South Korean electronics company Samsung expects a significantly higher operating profit in the first quarter of 2021.

The electronics giant Samsung expects a significantly higher operating profit for the first quarter of 2021 thanks to increasing smartphone sales. The operating result in the core businesses is expected to rise by 44.2 percent year-on-year to 9.3 trillion won (7 billion euros), the South Korean company announced.

In terms of sales, Samsung expects an increase of 17.5 percent to 65 trillion won (about 49 billion euros) for the past quarter. As usual, the group will not present more precise business figures until a later date.

Analysts assume that Samsung benefited from the lower introductory price for the latest generation of its smartphone top model in the first quarter. In January, the South Koreans launched the Galaxy S21 series. Compared to the previous models, the versions of the S21 were offered at significantly lower prices.

In contrast, it is expected that Samsung has made a lower operating profit in the chip division. Samsung, along with other semiconductor manufacturers, was affected by the February cold disaster in Texas. The unusually low temperatures in the southern US state had caused widespread power outages and hindered chip production there.

Last year, Samsung mainly benefited from the increase in Internet traffic as a result of the pandemic. As a result, the demand for memory chips for servers and PCs has increased significantly since the beginning of the crisis, as more people work from home. At the beginning of this year, Samsung had forecast stable development in the chip requirements of data centers and PC customers.

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