Business

Strong sales of phones and TVs helped Samsung saw 45% jump in profit in the Q1 2021: Report

Due to the COVID-19 pandemic, spending time at home with smart gadgets becomes a daily habit, which eventually helped many tech companies to earn lumpsum profit via sales of smartphones, TVs, and home appliances.

Samsung also recorded a huge profit jump of 45 percent in the first quarter of this year, reports Refinitiv SmartEstimate. The report further suggests that the first quarter for the Korean tech giant is expected to have climbed by the operating profit of 9.3 trillion won ($8.2 billion).

However, Samsung is scheduled to announce the preliminary first-quarter results on Wednesday, but if the upcoming result matches with the above report then it will mark the company’s highest operating income since the first quarter of 2018.

What made Samsung earn such high-profit numbers?

There are many reasons for the profitable growth of Samsung, but the one that is worth mentioning is the early launch of the Galaxy S21 smartphone including S21+ and S21 Ultra, in January 2021.

According to Counterpoint Research, the Galaxy S21 was not only unveiled early but also was priced $200 less than its predecessor, which made the company grabbing a 23% share in the global smartphone market and setting a start for fast upcoming earnings.

Alongside, the frequent sales of premium Galaxy Buds also helped the Korean tech giant to reach the 4.15 trillion won. Besides, the company’s TV and home appliance business is expected to see an operating profit doubled to around 1 trillion won.

Apart from this, one department where Samsung didn’t do well is the ‘chipsets’. It is the only division where Samsung has struggled a lot as its semiconductor plant in Texas halted by the winter storm in mid-February.

Moreover, analysts have estimated that the losses related to the factory shut down were around 300-400 billion won. However, officials claimed that the production line now returned to normal as of late March. So, it is expected that this sector will also join the profit-earning departments quite soon.

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