Samsung’s Profit Is Estimated to Increase 44 Percent in Q1 2021

The prediction of Samsung’s profit increase has not been able to boost its share price.

REPUBLIKA.CO.ID, SEOUL – Samsung Electronics Co Ltd said Wednesday first-quarter profit is likely to rise 44 percent. The forecast saw a rapid spike in sales of smartphones and televisions or TVs, albeit influenced by falling chip revenue, after a hurricane that halted production in the United States (US).

The technology giant from South Korea estimates that its operating profit from January to March will be 9.3 trillion won or US $ 8.32 billion. This figure is in line with the weighted average analyst estimate of Revinitiv SmartEstimate.

Then, income is likely to increase 17 percent from the same period the previous year to 65 trillion won. Samsung plans to release detailed earnings at the end of this month.

Stock price Samsung traded down 0.4 percent after the release versus a 0.2 percent gain on the KOSPI benchmark. Shares have risen about 6.2 percent so far this year, compared to 8.8 percent of the KOSPI.

Analysts said Samsung’s mobile division is likely to see operating profit jump from more than 1 trillion won to around 4.15 trillion won. According to Counterpoint Research provider, the jump was after its flagship smartphone series, the Galaxy S21 sold more than the previous version, by a margin of two to one in the six weeks since its launch in January.

Counterpoint said a lower starting price for the flagships helped the sales of the world’s biggest smartphone maker during the quarter. The Galaxy S21 is priced at 200 US dollars less than the S20.

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