Samsung expects to see soaring first quarter operating profits of 50%, reaching the highest level since 2018, based on strong demand for memory chips and brisk smartphone sales.
The South Korean company placed its first quarter profit at 14.1 trillion won ($11.6 billion) in a preliminary report, with full earnings to be announced April 28. Revenues are estimated to rise 18% from a year earlier to a record 77 trillion won ($63 billion). https://news.samsung.com/global/samsung-electronics-announces-earnings-guidance-for-first-quarter-2022
Samsung is the world’s largest maker of memory chips and smartphones. Samsung’s memory sales in the first quarter likely benefited from problems at a rival NAND chip plant owned by Japan’s Kioxia and Western Digital due to contamination of raw materials, according to analysts at TrendForce and others.
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Samsung also shipped an estimated 72 million smartphones in the first quarter, down 11% from a year earlier, according to Counterpoint Research, although still high enough to bolster strong earnings.
The Galaxy S22 Series smartphone series outdid the previous model S21 by 50% in its first week of sales in late February. As of the end of March, the S22 Series shipped just over 6 million units, Counterpoint said.
Samsung’s chip sales success in the first quarter follow stellar results in the chip industry at large, which reached record levels in 2021. Samsung’s revenues for all chips reached $75 billion in 2021, up 32% over 2020. For all chips, Samsung was second in 2021 behind Intel, with $76.5 billion in revenues.
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In February, global semiconductor sales were $52.5 billion, up 32% from a year earlier, according to the World Semiconductor Trade Statistics Organization. Chip sales have been up globally by more than 20% for 11 consecutive months.
Semiconductor sales into the Americas have outpaced other regions and increased 43% year-to-year in February, the Semiconductor Industry Association noted.