Samsung Electronics reports a 50% rise in operating profit

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Samsung Electronics reports a 50% rise in operating profit

An advertisement of Samsung Electronics' Galaxy S22 series is displayed at a retail shop in Seoul. [YONHAP]

An advertisement of Samsung Electronics' Galaxy S22 series is displayed at a retail shop in Seoul. [YONHAP]

 
Samsung Electronics reported a 50.32-percent rise in first-quarter operating profit on strong smartphone sales and a lower-than-expected decline in the price of dynamic random access memory (DRAM) chips.
 
In a preliminary financial report released on Thursday, the world’s biggest smartphone and memory chip maker estimates an operating profit of 14.1 trillion won ($11.6 billion) in the period, beating a market consensus of 13.1 trillion won published by FnGuide.
 
Sales hit an all-time quarterly high of 77 trillion won, up 17.76 percent compared to the same period last year, despite unfavorable seasonality and the Russia-Ukraine war, which forced the company to suspend product shipments to Russia last month.
 
The sales figure beat the market estimate of 75.3 trillion won.
 
Neither segmentation nor net profit were provided in the guidance released by the company.
 
Analysts say that the solid result was led by semiconductors, which benefited from solid demand for memory chips used in servers. The price decline of DRAM chips was in the mid-single-digit range, less steep than anticipated, according to Doh Hyun-woo, an analyst at NH Investment & Securities.
 
The successful February introduction of and strong orders for Galaxy S22 devices also helped.
 
Samsung Electronics said that over 900,000 of the company's latest smartphone were sold as of early this month and that the 1-million-unit mark will be broken by April 8.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]
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