Samsung expects operating income to surge 44% in first quarter
Phones and appliances likely led 9.3 trillion won profit
Samsung Electronics has recorded operating income in the first quarter that beat market expectations.
The South Korean tech giant said on Wednesday that it expects sales of 65 trillion won and operating income of 9.3 trillion won in the first quarter.
This will be an increase of 17.48% and 44.19%, respectively, from the same time period in 2020.
Compared to the fourth quarter of 2020, it is an increase of 5.61% and 2.76%, respectively.
The figures beat forecasts of South Korean analysts. They expected operating income of late-8 trillion won to 9 trillion won.
Samsung’s component businesses likely saw its profitability drop due to the halt of its chip factory in Austin, Texas. However, the COVID-19 pandemic is expected to have led to pent-up demand for smartphones and TVs.
The company’s chip business is expected to recover in the second quarter, which will lead to an increase in operating income.