High performance of chip business helped Samsung record operating profit in the first quarter

Tencent Technology Samsung Electronics released the company’s first quarter earnings report on Thursday. The financial report showed that Samsung Electronics’ first-quarter revenue was 60.5 won, benefiting from the continued strength of the chip business and the strong rebound in smart phone business, compared with the same period last year. The 50.5 trillion won increased 19.82%; operating profit was 15.64 trillion won (about 14.4 billion US dollars), a record high; net profit was 11.6 trillion won (about 10.7 billion US dollars), an increase of 52.11%.

I. Revenue growth rate

Samsung Electronics’ first-quarter revenue was 60.5 won, up 19.82% from 50.5 trillion won for the same period last year. The company had expected its first-quarter revenue to grow 18.69% year-on-year, from 50.5 trillion won in the same period last year. 60 trillion won.

Although Samsung Electronics maintained a relatively high growth rate, it was lower than the 23.7% in the previous quarter and 29.7% in the third quarter of last year.

Second, operating profit hit a record high

Samsung Electronics’ operating profit in the first quarter hit a record of 15.6 trillion won, a 58.03% increase from the same period last year. The company had predicted in its financial report released earlier this month that its operating profit in the first quarter would be expected to reach 15.6 trillion won. (About US$14.6 billion), an increase of 57.58% from 9.89 trillion won for the same period of last year

Third, the rapid growth of net profit

Samsung Electronics' net profit for the first quarter reached 11.6 trillion won (about 10.7 billion US dollars), an increase of 52.11% from 7.6 trillion won in the same period last year. In the past six quarters, driven by the substantial increase in chip business performance, Samsung The year-on-year growth of electronic net profit has always remained above 45%.

Fourth, mobile phone business operating profit continues to grow rapidly

The first-quarter operating profit of Samsung Electronics including mobile phone business IT and mobile division was 3.77 trillion won, an increase of 82% from 2.07 trillion won in the same period of last year. The company stated that the operating profit of mobile phone business increased significantly year-on-year, thanks to advances. Galaxy S9 was released, and the previous generation Galaxy S8 continued to perform perfectly. Samsung Electronics released the Galaxy S9 in March this year, which was earlier than the time to market for the previous generation Galaxy S8. Samsung Electronics earlier this month suggested that the Galaxy S9 was shipped. The volume has exceeded 10 million.

However, industry observers are still skeptical that Samsung Electronics’ mobile phone business will continue to shine in the future, because the company’s share of the Chinese and Indian markets is constantly eroded by Chinese manufacturers.

V. Decline in operating profit of home appliance business

Samsung Electronics’ operating profit for the consumer electronics business in the first quarter was 280 billion won, down from 401 billion won in the same period of last year. The company said that the operating profit of consumer appliance business declined year-on-year, mainly because the company reduced its mid- to low-end product line. Quantity, put energy into high-end products.

VI. Strong performance in chip business

Samsung Electronics currently controls approximately two-thirds of the global DRAM memory chip market. The chip company's operating profit in the first quarter reached 11.6 trillion won, which is higher than the 6.31 trillion won in the same period of last year; revenue reached 20.78 trillion won. Operating profit reached 55.6%. According to data provided by InSpectrum Tech, the agreement price of the 32GB DRAM server module in the first quarter was up 5.6% from the previous quarter, and the agreement price of the second 128GB MLC NAND flash memory chip was down by 11%.

Samsung Electronics said that due to the recovery of server processor and mobile phone industry demand, the company's chip business will continue to grow in the second quarter. The company said that the current demand for server DRAM chips in China and the United States is very strong.

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