Samsung’s profit grew substantially in the first quarter of 2021. The huge rise was reportedly fueled by high mobile revenues, which helped to offset the company’s semiconductor division’s lower profits.
Due to huge sales of its new flagship smartphone, the Galaxy S21, the South Korean company expects a major rise in its Q1 earnings.
For Q1 of 2021, combined revenues are projected to be around KRW 65 trillion ($58 billion), with consolidated operating Samsung’s profit projected to be around KRW 9.3 trillion ($8.3 billion). In comparison to Q1 2020, this represents a 17.48 percent increase in revenue and a 44.19 percent increase in operating profit.
During the first quarter, the company’s typical consumer electronics division, which sells televisions and appliances, is supposed to benefit from the pandemic’s continued pent-up demand.
The S21 has a $200 lower starting price than the S20, which boosted revenue for the world’s largest smartphone manufacturer during the quarter, according to Counterpoint.
The high operational costs of the latest 5nm EUV technology, as well as the expense of new facilities, are said to have impacted profitability. Even a recent power outage at Samsung’s chip plant in Austin harmed the group. As memory chip costs have risen, the division is projected to take the lead in earnings in the near future.