Tech

Samsung expects a significant increase in profits for the second quarter

Thanks to strong chip demand and rising prices, Samsung expects operating profit to increase by more than 50 percent in the second quarter of 2021. The profit from the core businesses is expected to rise 53.4 percent year-on-year to 12.5 (9.3 billion euros), the South Korean company announced in its earnings forecast on Wednesday. The numbers exceed market expectations.

Samsung Electronics is a leader in smartphones, memory chips and televisions. Samsung expects sales to rise by 19 percent to 63 trillion won (about 46.9 billion euros). As usual, the group will not present more precise business figures until a later date.

Analysts assume that Samsung has benefited from the rising chip prices. The trend should therefore continue in the current third quarter. Samsung itself had forecast an increase in profits “in view of favorable business conditions” for memory chips. This also includes the strong demand for servers and PCs.

In addition, the company resumed production in its chip factory in Austin, Texas, after a week-long shutdown. In February, unusually low temperatures in Texas caused large-scale power outages and hindered chip production there.

In contrast, Samsung is expected to see lower operating profit in the smartphone division in the second quarter. The company had already expected sales of its top model to slow down. Samsung launched the Galaxy S21 series in January.


(kbe)

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