After long problems, Samsung Electronics was finally able to post positive development in its smartphone business again. The new flagship Galaxy S21 has brought back some customers that were ditching or planning to ditch the brand.
Across the company’s business, Samsung Electronics achieved a sales increase of 18 percent to 59.1 billion dollars in the first quarter of this year. This resulted in an operating profit of 8.45 billion dollars, 45 percent more than in the same period last year. The company announced this today in Seoul.
Sales in the mobile division climbed again in the first three months of the year. After a plus of 13 percent, a little over 25 billion dollars were booked here. Above all, the Galaxy S21 should be responsible for this. However, the Samsung management has already warned that this growth will currently not be sustainable. After the first boom after the release of the new flagship, smartphone sales are already leveling off downwards and the shortage of various components is causing additional problems for the manufacturer.
Samsung TV And Chips Also Making Fortune
First of all, however, you can be happy that things not only looked better with smartphones but also in the entertainment electronics sector, which mainly lives from televisions. Here sales could also be increased by 26 percent to 11.7 billion dollars. But here, too, the same game: if it gets warmer again and if the pandemic measures can even be relaxed in some cases, the demand for TV sets is likely to decline significantly again.
The chip division, on the other hand, is likely to be much more stable, as it is much less dependent on the short-term whims of consumers. Above all, the increasing demand for cloud capacities should ensure a good demand for lucrative high-end storage. But beyond that, the demand for semiconductor products is already well above the current production quantities, which of course benefits Samsung.
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