Science & Technology

Samsung expects first-quarter profit to increase 44%: analysts

Samsung said Wednesday that first-quarter profits are likely to increase by 44%. Analysts said it was due to a surge in strong sales of smartphones and TVs, although it was mitigated by the possibility of a decline in chip profits after the storm stopped production in the United States.

South Korean tech giant forecasts operating profit of $ 8.32 billion from January to March, in line with the weighted average analyst forecast of RefinitivSmartEstimate.

according to ReutersAccording to analysts, Samsung’s mobile division will see operating profits of more than 1 trillion won to about 4.15 after the flagship Galaxy S21 smartphone series surpassed the previous version by a 2: 1 difference in six weeks after its launch in January. He said it was likely to have surged to trillion won. To the counterpoint of the research provider.

According to Counterpoint, the lower flagship opening price has boosted sales of the world’s largest smartphone maker this quarter, with the S21 priced $ 200 lower than the S20.

According to analysts, Samsung’s TV and consumer electronics business is likely to double its profits to about 1 trillion won due to the continuation of the stay-at-home order.

LG Electronics, a rival of cross-town TVs and home appliances, announced on Wednesday the largest quarterly operating profit of 1.5 trillion won from January to March.

In Samsung’s chips sector, profits could drop by 20% to 3.6 trillion won due to costs associated with increased domestic production and losses at the Texas plant after the shutdown in mid-February, which is a strong demand. Analysts said it was blunting the benefits.

US memory chip peer Micron Technology Inc forecasts third-quarter earnings higher than analysts expected last month due to increased demand brought about by the global shift to remote work.

The price of DRAM chips, which are widely used in laptops and other computing devices, has risen 5.3% from the last three months from January to March, TrendForce data show. Analysts expect this trend to continue as a global chip shortage will spike supply to buyers.

“”Strong demand for servers could lead to further price increases this quarter.Park Sung-soon, an analyst at Cape Investment and Securities, said.

Samsung expects first-quarter profit to increase 44%: analysts Samsung expects first-quarter profit to increase 44%: analysts

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