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Samsung first-quarter revenue probably surged 45% on bumper smartphone, equipment gross sales By Reuters 



© Reuters.

By Joyce Lee

SEOUL (Reuters) – Samsung Electronics (OTC:) Co Ltd probably noticed a forty five% soar in revenue for January-March on sturdy gross sales of smartphones, TVs and residential home equipment, although chip division earnings are seen tumbling after a storm suspended manufacturing at its U.S. plant.

Spending extra time at house as a result of coronavirus pandemic, shoppers have splashed out on an array of high-margin client electronics which in flip has helped trigger a world scarcity of semiconductors.

Working revenue for the South Korean tech large within the quarter is predicted to have climbed to 9.3 trillion gained ($8.2 billion), in keeping with a Refinitiv SmartEstimate drawn from 16 analysts. SmartEstimates assign extra weight to forecasts from constantly correct analysts.

That will mark Samsung (KS:)’s highest working earnings degree for the primary quarter since 2018. Income probably rose 12%.

Samsung is scheduled to announce preliminary first-quarter outcomes on Wednesday.

Particularly, its cell division appears to be like prefer it had a stand-out quarter, benefiting from the launch of its Galaxy S21 sequence in mid-January – greater than a month forward of the flagship mannequin’s regular annual launch schedule.

The world’s largest smartphone maker is estimated to have cornered roughly 23% of worldwide market within the quarter, due to that launch and cheaper-than-usual pricing for its premium gadgets, in keeping with Counterpoint Analysis. The S21, for instance, was priced $200 decrease than the S20.

That compares with 20% market share in the identical quarter a yr in the past and 16% market share within the earlier quarter when arch-rival Apple Inc (NASDAQ:) launched the iPhone 12.

Excessive-margin equipment reminiscent of Galaxy Buds did brisk enterprise as nicely, analysts stated. They estimate working revenue for the division probably soared by greater than 1 trillion gained from a yr earlier to about 4.15 trillion gained.

Samsung’s TV and residential equipment enterprise is predicted to see working revenue greater than double to round 1 trillion gained.

Regardless of stratospheric demand worldwide for chips, income for Samsung’s semiconductor division are anticipated to have fallen by roughly a fifth to three.6 trillion gained.

The division has been hampered by the price of ramping up new manufacturing and losses at its Texas manufacturing unit after a winter storm halted output in mid-February. Samsung stated manufacturing on the plant had returned to near-normal ranges as of late March.

Analysts have estimated the losses associated to the Texas manufacturing unit shutdown at round 300-400 billion gained.

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