Samsung says strong Galaxy S21 sales helped drive up first quarter earnings

Samsung says strong Galaxy S21 sales helped drive up first quarter earnings
Samsung Electronics has announced financials for the first quarter ended March 31, 2021. The company had a record-breaking first quarter, with total consolidated revenue of KRW 65.39 trillion (~$59 billion), an increase of 6 percent from the previous quarter. Operating profit climbed 4 percent Quarter on Quarter to KRW 9.38 trillion (~$8.5 billion).

The smartphone and consumer electronics units were the main growth drivers, and they compensated for lower earnings from the semiconductor and display wing. 

The IT & Mobile Communications Division brought in revenue of KRW 29.21 trillion and raked in a KRW 4.39 trillion ($3.96 billion) profit, both an increase over the previous quarter. The company said that flagship smartphone sales grew QoQ, largely because of the Galaxy S21 series. Mass-market phones such as the Galaxy A series continued to do well during the quarter.

Samsung expects Galaxy S21 sales to taper off this quarter

The South Korean manufacturer saw demand recovering from the previous year and expects solid demand for the new Galaxy A72 and A52, which are contenders for this year's best smartphones, during the second quarter. Flagship models may lose steam because of  'diminishing new product effects' and components shortage. This is expected to adversely affect revenue and profit.

Samsung says PC, tablets, and wearables also contributed to growth during the March quarter and expects sales to remain strong during the current quarter, 

The tech giant is optimistic about the second half of 2021 and sees shipments returning to pre-pandemic levels on the back of economic recovery and expansion of the 5G market. It says that it plans to maintain its dominance by popularizing the foldable category and bringing out more mass-market 5G phones. The company is expected to announce the Galaxy Z Fold 3 and Z Flip 3 in July.

Samsung also says that its chipmaking arm has started the development of the second-generation 3nm process.

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