Samsung Electronics Announces 50% Jump in Quarterly Profits | Technology
The world’s largest maker of memory chips and smartphones estimates first-quarter profits hit $11.6 billion.
Samsung Electronics Co Ltd reported a 50% increase in quarterly operating profit on Thursday to post its highest first-quarter profit since 2018, as strong demand supported memory chip prices.
The world’s largest memory chip and smartphone maker estimated its first-quarter profit at 14.1 trillion won ($11.6 billion), compared to a Refinitiv SmartEstimate of 13.3 trillion won ($10.9 billion). ).
Revenue likely rose 18% from the same period a year earlier to a record 77 trillion won ($63 billion), the company said in a brief preliminary earnings statement, also higher. to market expectations.
Samsung is due to release detailed results on April 28.
Although chip prices fell in the first quarter, analysts said they held up better than expected due to strong demand as well as cautious capital spending by chipmakers and limited expansion in capacities. This boosted Samsung’s chip revenue, which accounts for about half of its total profits.
The price of a type of DRAM chip, widely used in data centers, fell 8% in the quarter according to data provider TrendForce, while prices of NAND flash memory chips, used for storage of data in technological devices, fell between 5% and 10%. percent.
Analysts expect DRAM prices to continue falling in the April-June quarter as rising inflation could potentially hurt demand for PCs, laptops and smartphones.
However, feedstock contamination in February at a NAND Flash chip factory owned by Japan’s Kioxia and US-based Western Digital is expected to push NAND Flash prices up 5-10%, offsetting the effects of modestly high inventories maintained. by buyers, TrendForce said. .