Strong sales of smartphones and TVs boomed Samsung’s profits in first quarter of 2021

Recently, Samsung officially released its first-quarter 2021 results, which reveals a hike in operating profit and revenue. Despite the Covid-19 pandemic, the company’s sales expanded because of robust demand for smartphones, smart TVs, and home appliances.

Talking about figures, Samsung’s revenue was KRW 65.4 trillion (around $59 billion), and operating profit of KRW 9.38 trillion (around $8.46 billion) in the quarter. Besides, the company gained 18.2% higher revenue and 45.5% higher operating profit compared to Q1 2020.

On the other hand, the South Korean tech giant achieved 6% higher revenue and 4% higher operating profit than the previous quarter (Q4 2020). At the same time, the company expects that the chip shortage could make a huge negative impact on its business.

Samsung First Quarter 2021 Results

• Mobile Communications Business

Samsung revealed that the Mobile Communications Business rose significantly as sales of flagship and mass-market smartphones increased and contributions of products in the Device Ecosystem such as tablets, PCs, and wearables grew. Aside from this, the Mobile Communications Business is set to see revenue and profit decrease as flagship smartphone sales fall and some components experience supply issues.

• Consumer Electronics Division

According to the company, its Consumer Electronics Division reported higher profit both quarter-on-quarter and year-on-year as demand remained strong for digital appliances and premium TVs.

• Digital Appliances Business

The demand for Digital Appliances Business remained strong in the first quarter despite traditionally weak seasonality. The earnings grew because of strong sales of premium products such as customizable Bespoke refrigerators

• Semiconductor/Display Panel Business

Samsung’s Semiconductor Business declined quarter-on-quarter because of solid memory shipments, mainly due to the production disruption at the Austin fab. In addition, profit from the Display Panel Business fell quarter-on-quarter because of the weak seasonality of mobile products.

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