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What chipageddon? Samsung says sales and profits soared in Q1

Looks like the Galaxy S21 did well, and Texas storm shutdown blew over

Samsung has pre-announced its Q1 2021 earnings and predicted $58.1bn of consolidated sales and $8.3bn of operating profit.

The company's guidance represents a 2.7 per cent increase in operating profit and 5.6 per cent increase in consolidated sales from Q4 2020. In year-on-year terms, Samsung had a 44.2 per cent increase in operating profit and 17.5 per cent increase in consolidated sales.

Samsung described the quarterly revenue and operating profit as the highest in the company’s history.

A further breakdown of earnings from Samsung is expected later this month. however, much of the growth is likely attributable to smartphone sales, especially the new Galaxy S21 range, which came out at a lower price point than usual.

Analysts have estimated that Samsung will invest over 30 trillion won (£19bn+, $26bn+) in its chip contract manufacturing business this year, compared to about 6 trillion won last year.

Although COVID-related factors have increased the demand for personal tech, industry-wide smartphone sales have overall slowed in recent years as consumer trends shift to upgrading as necessary instead of following new product launches.

Smartphone manufacturing is further complicated by the global semiconductor drought. The combination of consumer trends and semiconductor shortage has resulted in competitor LG recently giving up the business arm altogether.

However, Samsung is less affected by the shortage than others as the giant chaebol makes many of its own components. Although one Samsung factory in Texas was shut down in February due to power outages, operations returned to normal in late March.

Korea's Yonhap News Agency reported the unscheduled shutdown cost Samsung approximately $264m. ®

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