Smartphones and Home Appliances Soared... Samsung Electronics Q1 Operating Profit 9.3 Trillion Won, Up 44% YoY (Update)

Samsung Electronics Headquarters
[Image source=Yonhap News]

[Asia Economy Reporter Kim Heung-soon] Samsung Electronics recorded an operating profit exceeding 9 trillion won in the first quarter of this year, surpassing market expectations despite the prolonged COVID-19 pandemic. This was the result of rising sales of finished products such as smartphones (IM) and premium TVs and home appliances. Although semiconductor profits, the company's mainstay, fell short of expectations, performance improvement is expected from the second quarter due to price increases caused by the global supply shortage.

Samsung Electronics announced on the 7th that its consolidated financial statements for January to March showed tentative sales of 65 trillion won and operating profit of 9.3 trillion won. Sales rose 17.48% compared to the first quarter of 2020 (55.33 trillion won) and increased 5.61% compared to the previous quarter (61.55 trillion won). Operating profit increased 44.19% compared to the same period last year (6.45 trillion won) and rose 2.76% compared to the previous quarter (9.05 trillion won).

Sales are close to the level of the third quarter of last year (66.96 trillion won), which recorded the highest ever, and operating profit is a strong performance exceeding the market's average forecast (consensus), which expected around 8.9 trillion won.

The driving force behind Samsung Electronics' solid first-quarter performance is attributed to the set division, including smartphones and TVs and home appliances. Although the company did not disclose performance by division, the market estimates that the mobile division, responsible for smartphones, posted an operating profit of around 4.3 trillion won. This was due to increased demand for the flagship Galaxy S21 and the budget Galaxy A series. In addition, the consumer electronics (CE) division, which raised interest with premium TVs and the customized home appliance called 'Bespoke,' also increased sales and is reported to have achieved an operating profit close to 1 trillion won.

In semiconductors, despite the rise in DRAM prices at the beginning of the year, the industry reports that the damage caused by the shutdown of the Austin plant in Texas due to a cold wave in the United States hampered performance, resulting in lower-than-expected results. The semiconductor division's first-quarter operating profit is estimated to be around 3.5 to 3.6 trillion won, down from 4.12 trillion won in the first quarter of last year.

This content was produced with the assistance of AI translation services.