Chips tipped as driver for Samsung in Q1 - Mobile World Live

Chips tipped as driver for Samsung in Q1

05 APR 2022

Analysts predicted Samsung would post its highest Q1 profit since 2018 this year, Reuters reported, noting price stability delivered by solid demand for the company’s chips as a key factor.

The news agency cited estimates from financial market data provider Refinitiv based on information from 13 analysts, which placed Samsung’s profit at KRW13.3 billion ($10.7 million), up 41 per cent year-on-year.

Profit from chips was tipped to more than double to KRW7.6 billion. The analysts reportedly indicated chip prices held up better-than-expected in the first quarter, partly owing to strong demand and sales of high-end products.

Reuters also noted Samsung’s mobile business profit is expected to be slightly down year-on-year at KRW4 billion. It cited estimates suggesting the vendor sold about 8 million of its Galaxy S22 smartphone.

Greg Roh, head of research at Hyundai Motor Securities, told Reuters Samsung was unlikely to feel much impact from any halt in business in Russia, despite accounting for 30 per cent of shipments to the country.

This is because Russia and Ukraine account for an estimated 2 per cent of Samsung’s total sales.

Samsung is due to issue official figures for Q1 on 7 April.

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Anne Morris

Anne Morris is a freelance journalist and contributes news and analysis to Mobile World Live.

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