|
|
|
Samsung expects $8.3B in Q1 earnings on strong mobile biz
|
|
|
|
Top Stories |
|
|
|
|
IANS | 07 Apr, 2021
Samsung Electronics on Wednesday expected a market forecast-beating
earnings for the first quarter of 2021, estimating its operating profit
at $8.3 billion for the first three months of the year, up 44.2 per cent
from a year ago.
The forecast came as its mobile business fared well, offsetting a relatively tepid performance from the semiconductor business.
On
a quarterly basis, Samsung's first-quarter operating income was up 2.8
per cent from the last quarter of 2020, and the sales estimate was up
5.6 percent from the previous quarter.
Samsung, the world's
leading memory chip and smartphone vendor, did not break down
performances of its respective business divisions, saying it will
announce the detailed earnings later this month.
Analysts have
been predicting that Samsung's main cash cow chip business to report
lukewarm earnings in the first quarter due to a monthlong shutdown of
the company's semiconductor plant in Austin, Texas, where a severe
winter storm caused a power outage in February.
Samsung's chip
business is estimated to have logged an operating income of below 4
trillion won in the first quarter, reports Yonhap news agency.
"The
downside of Samsung's first-quarter earnings would be the foundry
business because losses are inevitable from the Austin factory
shutdown," said Park Sung-soon, an analyst at Cape Investment &
Securities.
"Its estimated damage from the shutdown is about 300 billion won."
It
was the mobile business that anchored Samsung's first-quarter earnings,
analysts said, thanks to strong sales of Galaxy smartphones. They
expect the company's IT & Mobile Communications division to have
posted an operating income of over 4 trillion won in the first quarter.
Samsung
has been introducing new Galaxy S devices in mid-February each year,
but this year, the company released the S21 in January with lower price
tags. The company also held a global launching event for its mid-tier
Galaxy A series smartphones for the first time last month to better
target budget phone users.
"With robust sales of the Galaxy S21
and the Galaxy A series devices, the average selling price (ASP) of its
smartphone products is expected to have increased sharply," said Pak
Yu-ak, an analyst at Kiwoom Securities.
Samsung's consumer
electronics unit, which oversees TV and home appliances, also
contributed to the company's strong first-quarter performance, according
to analysts, with some expecting it may have racked up an operating
profit of up to 1 trillion won in the first three months of the year.
They
predict Samsung, also the world's largest TV vendor, to have reported a
double-digit on-year growth in TV shipments in the first quarter, while
solid demand of premium home appliances to continue with the
pandemic-induced stay-at-home trend.
Samsung's display panel
business is expected to have logged an operating profit of around 500
billion won, according to analysts, with increased OLED panel sales.
Samsung's earnings may further improve in the second quarter with a recovery in the semiconductor sector.
A
rise in DRAM and NAND prices will also propel Samsung's chip unit
performance and is likely to make up for a sales decline from its mobile
business in the second quarter, according to analysts.
|
|
|
|
|
|
|
|
|
|
|
|
|
Customs Exchange Rates |
Currency |
Import |
Export |
US Dollar
|
66.20
|
64.50 |
UK Pound
|
87.50
|
84.65 |
Euro
|
78.25
|
75.65 |
Japanese
Yen |
58.85 |
56.85 |
As on 13 Aug, 2022 |
|
|
Daily Poll |
|
|
PM Modi's recent US visit to redefine India-US bilateral relations |
|
|
|
|
|
Commented Stories |
|
|
|
|
|
|
|
|