Samsung Electronics has reported its highest first-quarter revenue since2018, owing to rising smartphone sales of its flagship Galaxy S21 line. (as per BBC News)
Net profits at the Korean conglomerate increased 46.3 percent year on year to 7.1 trillion.
Sales of televisions and home appliances increased significantly, owing to the continued popularity of stay-at-home consumers.
In a financial report, the company confirmed that strong sales of smartphones and consumer electronics overshadowed poorer outcomes from semiconductor materials and displays.
Apple, its closest competitor in the premium phone market, also reported strong growth on Tuesday, with iPhone sales in China helping to more than double the company’s revenue since the outbreak began.
However, both firms consistently performed well throughout the pandemic, as many customers upgraded their phones, laptops, and other devices to allow them to work remotely.
Since an economic recovery from the Covid-19 pandemic gains traction and more customers look to upgrade to 5G mobile services, Samsung predicts a mildly disappointing second quarter, accompanied by stronger results in the second half.
According to the report, due to very high demand that led to a worldwide shortfall, Samsung’s chip business was hampered by the cost of building up domestic manufacturing and a storm-related shutdown at its Texas plant in February.
Even so, current operations at the manufacturing plant have resumed, and the world’s largest chipmaker anticipates improved performance from its chosen firm in the second half.
The electronics behemoth warned that this could be offset by a drop in mainstay smartphone sales and ongoing supply issues with specific elements.