Samsung’s second-quarter profit could increase by 38 percent due to rising component pricing

Samsung Electronics is expected to release its fourth-quarter financial results on Wednesday, with analyst consensus predicting a 15.4 percent gain in revenue and a 38 percent increase in profitability. Such changes are related not just to an increase in product availability, but also to an increase in memory pricing.

Reuters has provided the forecasts of experts interviewed by Refinitiv SmartEstimate… Samsung’s second quarter should have been marked by a drop in smartphone demand, but increase in demand in other directions more than compensated for this tendency. According to estimates, the company’s operational profit might have increased by 20% on a constant basis, achieving an all-time high for the season since 2018.

According to TrendForce, RAM costs increased by 27 percent sequentially in the second quarter, while solid-state memory prices increased by 8.6 percent. Samsung’s revenues and profitability are strongly reliant on these product categories, and shipments are likely to rise again in the second quarter. Owing to the low base effect produced by the February stoppage of production in Texas due to weather anomalies, contract earnings should have increased. Samsung’s operating profit was predicted to climb by 22% in the second quarter compared to the same period last year as a result of the microprocessor introduction.

 

According to specialists at Shinyoung Investment & Securities, the sales dynamics of smartphones were unfavorable, as the number of sales of these devices might be cut from 76 to 59 million units. By the second quarter, the flagship smartphone model, which was introduced in mid-January, had lost popularity. In the second quarter, the situation was aggravated by a lack of mobile components and weaker demand in India due to the pandemic. This week, the corporation will release preliminary outcomes of its actions over this time period.