SEOUL, South Korea (AFP) – Profits from operations are expected to rise 50.3 percent in the first quarter, Samsung Electronics said Thursday, despite concerns about the global supply chain, the South Korean company said.
Smartphone maker Samsung expects to make about $11.6 billion in operating profits in the first three months of 2022, up from $9.4 billion in the same period last year. This is a big increase.
Samsung did not share specifics on its individual segments’ performance. On April 28, the corporation is anticipated to reveal its complete financial results.
Analysts said the prediction was likely based on strong smartphone sales, but they warned against a predicted drop in memory chip profitability.
In the research, Kim Un-ho, an analyst at IBK Investment & Securities, said that price declines in memory chips will be restrained as demand exceeds expectations.
The study said that profits at Samsung’s mobile business are expected to rise 55.8% year on year to more than 4.1 trillion won, despite a 6% drop in profits at the company’s memory chip business.
With memory chips now being utilized in a broad range of devices and cloud servers – which are critical for remote work in the digital age – the industry has grown less reliant on seasonal demand for electronics like smartphones and laptops.
Last year, as the demand for chips used in mobile devices and data centres grew, Samsung sold more chips than ever before.
Kim forecasted that the group will earn 60.5 trillion won in operating profits in 2022, a 17% rise year on year.