Samsung phones push profits to highest since pandemic began

Samsung phones push profits to highest since pandemic began
2 Min Read

Daily US Times: Samsung has announced its strongest first quarter profits since 2018 on the back of strong mobile sales led by its flagship Galaxy S21 line.

The Korean giant’s net profits rose 46.3% compared to the same period in 2020 to 7.1tn won ($6.4bn).

Sales of home appliances and television saw strong growth, buoyed by continued stay-at-home demand.

However, Samnsung’s profits were dented by disappointing results for its chips business.

In an earnings report, the company said: “Solid sales of smartphones and consumer electronics outweighed lower earnings from semiconductors and displays.”

The korean giant’s main competitor for premium phones Apple also posted bumper results on Tuesday, with iPhone sales in China helping to double Apple’s profits since the start of the coronavirus pandemic.

Both Apple and Samsung have done well during the pandemic, as many customers chose to upgrade their phones, laptops and other devices to work from home.

Samsung is tipping a slightly lacklustre second quarter followed by stronger results in the second half, as the economic recovery from the coronavirus pandemic gathers pace and more consumers look to upgrade to 5G mobile services.

Despite high demand due to a global shortage, the Korean electronics giant’s chips business was hit by the cost of ramping up production domestically and a storm-related stoppage at its Texas factory in February.

However, the factory has resumed full production and Samsung, the world’s largest chipmaker is expecting stronger results for its semiconductor business in the second quarter.

Samsung warned that this could be offset by a decline in flagship smartphone sales and continuing supply issues with some components.

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