By
Godfrey Benjamin
April 23rd, 2024
Samsung Q1 profit is set to jump as high as 45% following the increased demand for electronic devices. The electronic giant has particularly been boosted by the launch of the Galaxy S21 series in mid-January.
Samsung Electronics Co Ltd (KRX: 005930) will mark the highest operating income level since 2018. According to a Refinitiv SmartEstimate which draws its estimate from 16 analysts, Samsung revenue in Q1 rose by 12% with operating profit reaching 9.3 trillion won ($8.2 billion). The growth has been attributed to high spending on electronic devices during the lockdowns. Much of its profits are set to be from its mobile division.
The division has greatly profited from the launch of the Galaxy S21 series which stood out this year. Not only was it launched a month earlier than usual but was also cheaper than usual. In fact, as it was priced at $200, it was cheaper than S20. This is said to have seen the smartphone maker garner a 23% market share. This is an increase from last year’s 20%. The year before this, it stood at 16% which shows consistent growth.
Analysts however add that even high margin Samsung accessories performed well in Q1. Galaxy Buds saw an operating profit soar to about 4.15 trillion Won compared to 1 trillion Won a year ago. The same is true of home appliances led by TVs. This is expected to rise by as much as 1 trillion Won.
On Wednesday, the electronic manufacturer is expected to release preliminary results. It is unlikely their results will be far from the Refinitiv SmartEstimate having weighed their forecast from consistently accurate analysts.
Samsung Texas Plant in Recovery
Samsung’s semiconductor division has been hit hard and is expected to report a loss. The company factory, located in Texas was shut down in mid-February following a winter storm. Although there has been a global microchips shortage, Samsung has been unable to capitalize on this in the first quarter.
The company has since revealed that the plant is back in operation and is near normal levels.
Samsung has over the years been a household name and is one of the most admired brands. In fact according to a poll by Moosylvania which asked about 1,000 US residents in the age group of 19 to 39 which were their favorite brands, Samsung came in at five. Only Apple, which was first, Nike, Amazon, Walmart, were ahead of it. One of its main competitors, which is also located in South Korea, LG, came in at 57th. It’s now even more likely to lose out to Samsung after officially announcing it is withdrawing from the smartphone business.