Samsung Electronics is anticipating a 931% increase in operating profit for the first quarter, attributed to the rebound in chip prices. Operating profit for January-March is projected to reach 6.6 trillion Korean won ($4.89 billion), a significant rise from the previous year’s 0.64 trillion won. Analysts at Daiwa Securities have expressed optimism about Samsung’s earnings, citing memory price hikes and strong sales of the Galaxy S24 phones. The company is expected to release its full earnings report later in the month.
In addition to the increase in operating profit, first-quarter revenue is anticipated to rise by 11.4% to 71 trillion won. Samsung is the largest manufacturer of dynamic random-access memory chips, used in various consumer devices like smartphones and computers. The decline in memory chip prices last year due to Covid-related disruptions seems to be reversing, following production cuts made by key players in the market.
Revenue from the global foundry industry also saw a sequential increase in the fourth quarter, indicating signs of recovery. Despite ongoing economic uncertainties, the industry is showing signs of stabilization, driven by replenishment of supply chain inventories in sectors like smartphones and PCs. Samsung Electronics is set to disclose more detailed financial results in the coming weeks.
Samsung Electronics is expected to see a significant increase in first quarter operating profit, with preliminary estimates showing a 931% rise to 6.6 trillion Korean won. This growth is attributed to the rebound in chip prices, particularly in dynamic random-access memory chips used in consumer devices like smartphones and computers. The increase in profit is also driven by strong sales of the Galaxy S24 phones. Analysts believe that the memory upturn cycle will continue to drive earnings in the coming years. Despite macroeconomic uncertainties, the industry has started to bottom out, with supply chain inventory restocking demand in the smartphone and PC sectors contributing to revenue growth. Samsung is set to announce detailed earnings later this month.
Source link
