Samsung expects first-quarter profit to soar 44%

Samsung’s Galaxy S21 lineup may have boosted first-quarter earnings.

Sara Tew / CNET

Samsung expects this to be a healthy boom in the first quarter, due to strong demand for computers and home appliances during the epidemic.

The Korean electronics giant said its profit for the three-month period ended March 31 was around 9.3 trillion won ($ 8.3 billion), a 44% increase on the year-ago period. The company expects to record income of 65 trillion ($ 58 billion), an increase of about 17% year-on-year.

Earnings guidance on Thursday, ahead of full earnings at the end of the month, did not provide specific segmentation results.

Apparently the rebound comes after its mobile business sales fell by 11% in the fourth quarter because of “intensified competition in the year-end season”. Samsung said in January it expected its Galaxy S21 lineup, which it introduced earlier that month, to boost its results in the first quarter.

Like its competition, Samsung is grappling with the coronavirus epidemic and the impact it has on consumers. When COVID-19 first began to spread, concern about the disease led to a dramatic slowdown in phone purchases as people around the world decided that the device they had was good enough.

Meanwhile, computers and televisions are hot items with people stuck at home, and buying equipment that consumers can only take so long. Samsung has benefited from growing demand for all products as well as its components that provide memory storage for data centers and consumer devices. But Samsung said earlier this month that first-quarter numbers were expected to be hurt by the costs associated with new production lines for its processors, despite “solid” demand for chips.

Samsung was also forced to shift strategy for some of its mobile products, the Galaxy S21 was released a month earlier than usual and offered at a lower price than the Galaxy S20 last year, In which each model was $ 200 less than its predecessor. The company hopes that the lower price tag will help attract buyers who had delayed upgrading their devices.

CNET’s Sharra Tikken contributed to this report.

By Jothi Venkat

Chief Editor Jothi Venkat Tips Clear In . Editorial chief and CEO of Representing many online News sites and Magazines. Having Media company World Wide with a team of Neutral Reporters.

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