Samsung Electronics Expects Remarkable Surge in First-Quarter Operating Profit
The surge in Samsung Electronics’ first-quarter operating profit is primarily attributed to the recovery in chip prices, driven by increased demand for artificial intelligence (AI).
Key Points:
- Samsung anticipates a more than tenfold increase in its operating profit for the first quarter.
- Despite the positive forecast, Samsung’s stock faced a decline.
- The company’s estimated operating profit for the quarter ending on March 31 is around 6.6 trillion won.
- This expected profit could be Samsung’s highest since the third quarter of 2022.
Chip Division Performance:
Samsung’s chip division, historically its largest revenue generator, is expected to report its first quarterly profit in five quarters. This turnaround is attributed to the rebound in memory chip prices.
Market Outlook:
Analysts remain optimistic about Samsung’s future in the chip market, expecting the company to catch up with competitors. Samsung plans to launch its latest and most powerful HBM chips in the third quarter.
Impact of External Factors:
The recent earthquake in Taiwan is likely to impact semiconductor supply, potentially leading Samsung and SK Hynix to raise memory chip prices more than planned, strengthening their second-quarter earnings.
Mobile Business Segment:
In the mobile business segment, Samsung is expected to report a solid profit following the launch of its flagship Galaxy S24 smartphones. The company shipped 57 million smartphones during the quarter, with an 8% increase from the previous quarter.
Global sales of Galaxy S24 smartphones increased by 8% compared to the previous Galaxy S23 series during the first three weeks of availability.
Conclusion:
Samsung is set to release detailed earnings on April 30, with analysts closely monitoring the company’s performance in the chip and mobile markets.
