Samsung profit up by 50% in first quarter thanks to smartphone and chip sales

Samsung is expecting record quarterly revenue and a profit jump in the first quarter, backed by smartphones and chips.
Written by Cho Mu-Hyun, Contributing Writer
Image: Samsung

Samsung said on Thursday in its preliminary results for the first quarter that it expects revenue of 77 trillion won and operating profit of 14.1 trillion won.

The figures are an increase of 17.8% and 50.3%, respectively, from the same period last year. It will be the company's highest quarterly revenue figure to date. Samsung will announce its full earnings report later this month.

South Korean analysts expect that the company's mobile and chip businesses have led the growth, backed by the launch of the Galaxy S22 series in February and high demand for memory from the server sector.

Samsung earlier on Wednesday said that the S22 series is expected to hit a million unit sales within this week in South Korea, while global unit sales have also increased 20% over the same time period compared to its predecessor.

The company stressed that this was a strong performance despite the ongoing global supply chain issue.

Samsung is also have expected to have benefited from memory chip prices remaining firm thanks to sustained demand for data centers, despite the first quarter traditionally being an off-season period as chip vendors adjust their production output.

The sustained demand for contract chip-making services due to the ongoing chip shortage has also contributed to Samsung Foundry's sales growth.

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