Analysts forecast gains by Samsung’s mobile division would offset weaker profit for its memory chip unit during Q1, Reuters reported.
The news outlet cited analyst predictions Samsung’s IT and Mobile Communications Division would book an operating profit of more than KRW4.2 trillion ($3.8 billion), KRW1 billion higher than Q1 2020, due to strong demand for the Galaxy S21 smartphone.
Its semiconductor unit was tipped for a 20 per cent drop in operating profit to KRW3.6 trillion as a result of increased investment to expand domestic production.
Samsung reportedly previously warned it faces serious chip supply issues which would impact Q2 results.
The vendor’s official Q1 guidance pointed to a 44.2 per cent year-on-year rise in operating profit to KRW9.3 trillion, with revenue growing 17.5 per cent to KRW65 trillion.
Meanwhile, LG Electronics, which announced earlier in the week it would close its mobile phone business, forecast record operating profit and revenue for Q1.
Its preliminary statement showed operating profit grew 39.2 per cent to KRW1.5 trillion and consolidated revenue increased 27.7 per cent to KRW18.8 trillion.Subscribe to our daily newsletter Back