The shortage of electronic parts gives large suppliers more scope for price increases. That makes the tills ring at Samsung from South Korea. The smartphone business, on the other hand, is muted.
As the world’s largest memory chip supplier, Samsung is benefiting from the electronics boom in the corona pandemic. According to preliminary figures, operating profit rose in the past quarter by a good 53 percent to 12.5 trillion won (9.3 billion euros), as the South Korean technology giant announced on Wednesday.
The numbers exceeded market expectations. Samsung expects sales to rise by 19 percent to 63 trillion won (about 46.9 billion euros).
The increased demand for notebook computers and servers for data centers, among other things, has triggered global bottlenecks in components in the past few months, giving large suppliers such as Samsung scope for price increases. Market researchers assume that the device manufacturers will have to pass the higher component prices on to consumers.
Analysts assume that Samsung has benefited from the rising chip prices. The trend should therefore continue in the current third quarter. Samsung itself had forecast an increase in profits “in view of favorable business conditions” for memory chips. Samsung Electronics is a leader in smartphones, memory chips and televisions.
In addition, the company also fully resumed production at its chip factory in Austin, Texas, after a week-long shutdown. In February, unusually low temperatures in Texas caused large-scale power outages and hindered chip production there.
In contrast, Samsung is expected to see lower operating profit in the smartphone division in the second quarter. The company had already expected sales of its top model to slow down. Samsung launched the Galaxy S21 series in January. For the next few months, among other things, new foldable smartphones from Samsung are expected. At the same time, Samsung also supplies displays to other smartphone providers.
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