Teknoku.me – Samsung Electronics posted profits amid the crisis of chipset scarcity in the technology industry.
In the financial statements for the first quarter ending March 31, 2021, Samsung’s total revenue was claimed to be 65.39 trillion won.
This figure is up 6 percent from revenue in the previous quarter and up 18.19 percent over the same quarter last year. Operating profit rose 4 percent from the previous quarter, touching the 9.38 trillion won figure.
Compared to the same period last year, Samsung’s operating profit was up 45.53 percent, according to a report from the Korea Herald. Samsung claims revenue in the first quarter of 2021 is the highest in history.
Samsung’s increased revenue and profit came from solid sales of smartphones and electronic equipment, outpacing revenues in the semiconductor and display sectors.
For the semiconductor business, Samsung posted revenues of 19.01 trillion won and operating profits of 3.37 trillion won in the first quarter of 2021.
Revenue from the semiconductor business fell due to production disruptions at the Austin, Texas plant. It is known, winter storms in Texas last February caused several semiconductor factories to close, including the Samsung factory.
Samsung said that the production line in Austin, Texas had fully recovered in the second quarter. The South Korean vendor will expand supply in the second half of this year through mass production at the Pyeongtaek Line 2 factory.
Then for the screen business, Samsung posted revenue of 6.92 trillion won and an operating profit of 0.36 trillion won in the first quarter of 2021.
Like the semiconductor business, Samsung’s display business also experienced a quarter-on-quarter (QoQ) decline, due to the scarcity of chipsets affecting many smartphone customers as well as the declining shopping season.
However, on a year-on-year basis (YoY), the screen business revenue has increased thanks to the adoption of OLED screens that are extended from the flagship to entry-level models.
The revenue from the big screen category is decreasing due to the ongoing conversion of production lines, to prepare the next generation television.
At a time of declining market demand and shopping season from quarter to quarter, Samsung said that overall, demand for mobile devices is starting to recover from the beginning of last year when the Covid-19 pandemic just hit the world.
Sales of Samsung smartphones increased on a QoQ basis, driven by the Galaxy S21 line as well as the mid-range phones from the Galaxy A series.
Ecosystem products, such as tablets, PCs, and wearables, also contributed to Samsung’s higher profit in the first quarter of 2021.
It is estimated that sales of new Galaxy A products, such as the Galaxy A72 and Galaxy A52 will continue to increase, while the newly introduced tablets, wearables, Galaxy Book, and notebooks will also experience solid sales.
However, Samsung acknowledges that there is a reduction in new products for its flagship model and that a shortage of supply of components will likely reduce the company’s mobile business revenue.
As is known, this year Samsung will not launch the Galaxy Note. One of the reasons is because the chipset scarcity crisis is still hitting the industry.
Samsung also posted revenues from its TV and household appliances businesses. The Consumer Electronics Division said the Visual Display and Digital Appliances business posted revenue of 12.99 trillion won and an operating profit of 1.12 trillion won in the first quarter of 2021.