Samsung’s mobile unit recorded profit and revenue gains in Q1, but the vendor again warned about the potential impact of component shortages on flagship model availability and earnings in the current period.
Kim Sung-Koo, VP of the Mobile Communications Business, said on an earnings call Samsung is working to minimise the impact of shortages by rebalancing its global supply chain management capabilities. He noted sales of the newly-introduced Galaxy A-series are predicted to accelerate, with solid demand for tablets and wearables.
The company forecasts the mobile market to recover to pre-Covid-19 (coronavirus) levels in H2 on an annual basis, driven by a gradual economic rebound and full-fledged expansion of the 5G market, he said.
Operating profit for its IT and Mobile Communications Division grew 65.7 per cent year-on-year to KRW4.39 trillion ($3.96 billion), accounting for 46.8 per cent of Samsung’s total operating income compared with 41.2 per cent in Q1 2020. Revenue rose 12.3 per cent to KRW29.2 trillion.
Kim said growth was driven by strong demand for its flagship Galaxy S21 series and continued solid sales of the mass-market Galaxy A-series.
The network business maintained a strong performance as 5G network rollouts continued to expand globally.
Group net profit of KRW7.14 trillion was a record Q1 high, up 46.4 per cent, on revenue of KRW65.4 trillion, an 18.2 per cent rise. Smartphone and consumer electronics sales offset lower semiconductor and display division earnings.Subscribe to our daily newsletter Back