Samsung Electronics announced the strongest profit in the first quarter of 2018 due to strong sales of mobile phones led by its leading Galaxy S21 series.
The Korean giant’s net profit increased by 46.3% compared to the same quarter in 2020 to 7.1 trillion won ($ 6.4 billion; 4.6 billion pounds).
Sales of TV and home appliances have grown significantly, with the demand for staying at home growing.
However, the company’s profits were dampened by disappointing results for its chips business.
“Strong sales of smartphones and consumer electronics are dominated by lower profits from semiconductor displays,” the company said in a report.
On Tuesday, Apple announced its main competitor for premium phones – bumper results. Sales of the iPhone in China have helped double the company’s profits since the epidemic began.
Both companies did well during the epidemic, as many customers opted to upgrade their phones, laptops and other devices to work from home.
In the second half, Samsung went through a slightly unsatisfactory second quarter, followed by stronger results, as the economic recovery from the Covid-19 epidemic accelerates, սպառ more consumers seek to upgrade 5G mobile services.
Slow sale of chips
Despite strong global demand, Samsung’s chips business suffered in February due to a halt in domestic production due to a hurricane at its Texas plant.
However, the plant has resumed full production, with the world’s largest producers expecting stronger results for the semiconductor business in the second quarter.
The electronics giant has warned that this could be offset by declining sales of leading smartphones and ongoing supply problems with some components.
The figures came a day after the family of the late Samsung chairman Lee Kun Hee announced plans to pay more than 12 trillion won ($ 10.78 billion) in inheritance taxes on his property.
The tax issue has been carefully considered, as it could affect the share of Samsung’s Lee family.
However, the announcement gave little clarity as to whether the Lee family would sell any shares to pay taxes.