SEOUL, South Korea — Samsung Electronics reported on Friday that operational profits for the first quarter will grow by more than ten times, with the company attributing the boost to the rebound in chip prices.
The tech giant expects a significant increase in operating profits for January-March, estimated to reach 6.6 trillion won ($4.89 billion), marking a 931.3% increase compared to around 640 billion won in the same period last year. As the flagship subsidiary of the South Korean conglomerate Samsung Group, which dominates business in Asia’s fourth-largest economy, the company revealed this information in a regulatory filing.
Yonhap news agency in South Korea said that this assumption is 20.5% more than the average estimate, citing data from its financial research business. Samsung predicts that sales will increase by 11.4% to 71 trillion won concurrently.
In recent years, record profits have been made by South Korean chipmakers, led by Samsung, despite rising product prices. However, sales of memory chips were hampered by the worldwide economic crisis. However, according to World Semiconductor Trade Statistics, industry analysts forecast a rebound this year, with an expected 11.8% growth in the semiconductor market.
Samsung’s optimistic projection coincides with SK Hynix’s January return to profitability after four straight quarters of deficits. Vice President of Counterpoint Research Neil Shah emphasized Samsung’s improved outlook, pointing to rising DRAM costs and a recovery in the smartphone market.
By the end of this month, Samsung is anticipated to deliver its final results report, which will include a detailed summary of its first quarter financial performance.
