Samsung Electronics Co Ltd likely saw a 45% increase in sales of smartphones, TVs, and home appliances in January-March, even though the income of the Chip division has been downsizing after a stormy suspension in its U.S. factory. With the coronavirus pandemic spending more time in their homes, customers have been splashing out a range of advanced consumer electronics that have helped lead to global semiconductor shortage.
According to the Refinitiv SmartEstimate drawn from 16 analysts, the operating profit for the South Korean technology giant is forecast to increase to 9.3 trillion ($8.2 billion) in the year. In SmartEstimates, predictions made by reliably reliable analysts are more relevant.
How Samsung Achieved 45% Surge In Sales Of Samsung Smartphone And Appliances During This Pandemic?
That is the largest level of operating profits for Samsung since 2018 for the first year. Perhaps 12% of revenues increased. The figures for the first quarter are planned for Samsung on Wednesday.
In particular, the smartphone division seems to have a quarter outstanding to gain from the mid-January launch of its Galaxy S21 range, more than a month ahead of the normal annual flagship product release.
As a result of this introduction and cheaper as normal prices of their luxury smartphones, counterpoint research estimates that the biggest world mobile company in the world has approximately 23 percent of the world market in a quarter. The S21, for instance, costs $200 less than the S20.
Researchers claim that due to the COVID-19 pandemic, nobody is living longer at home and this has meant that a vast variety of high-margin consumer electronics items have been increased and the company’s revenues have been increased.
And also they added that the demand for Samsung products got so strong that a global chip and other product shortage has seen and also the firm reported a decrease in the chip division’s income, primarily due to the storm which stopped production at its US plant.
That’s compared to the previous year’s 20% market share and the previous quarter’s 16% share when Apple Inc., the competitor of Archipelago, launched the 12 iPhone. Marginal accessories like Galaxy Buds were also very expensive, analysts said.
They expect the division’s operating profit to have risen by more than 1 trillion won from around 4.15 trillion a year ago.
Samsung is forecast to double its operating profit by approximately 1 trillion for the TV- & home appliance market. Despite global stratospheric demand for chips, the Samsung semiconductor division’s profits are forecast to drop by approximately one-fifth to three trillion.
After a winter storm stopped in mid-February, the division was plagued by costs of ramping up the factory’s new production and losses.
Samsung said plant activity had returned to almost normal levels by the end of March. Analysts predicted the losses of about 300-400 billion won concerning the closure of the Texas plant.