Samsung Electronic Expect 53% Increase in Operating Profit

Samsung Electronic Expect

Samsung expects a 53% rise in operating profit for the second quarter, lifted by strong demand for memory chips that offset weaker device sales hurt by component shortages.

The world’s largest smartphone and memory chip maker forecasts operating profit of 12.5 trillion South Korean won, equivalent to about $11 billion, for the quarter ended June 30. Samsung also projects revenue of 63 trillion won, up 19% from the prior year.

Samsung Electronic Expect
Samsung Electronic Expect

The South Korean firm’s outlook handily topped market expectations and indicated ongoing strength for tech giants—and especially chip makers that have seen greater pricing power during a historic supply crunch.

A year ago, in the Covid-19 pandemic’s first months, Samsung saw a double-digit drop in revenue for electronics products such as smartphones and televisions. But demand for components surged as people shifted more of their lives online. Results have remained strong ever since.

Analysts estimates gathered by S&P Global Market Intelligence were about 10.9 trillion won in operating profit and 61.2 trillion won in revenue.

Samsung reports full earnings later this month. The Suwon, South Korea-based company is considered as an industry bellwether because it is both a major electronics maker and a components supplier to the world’s biggest tech firms such as Apple and Sony.

At the start of the year, Samsung’s mobile business had been a bright spot, with first-quarter operating profits rising by roughly 65% over the prior year. The results were helped by an earlier release of its Galaxy S21 flagship phone, which made its debut about a month ahead of its usual timetable.

Read Also: Pentagon Scraps JEDI in Win for Amazon at Microsoft Expense

Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8


Newsstedy strives to be the dominant source for news on politics and policy in power centers across every continent where access to reliable information, nonpartisan journalism and real-time tools create, inform and engage a global citizenry.

Leave a Reply

Your email address will not be published. Required fields are marked *