Samsung Electronics expects its first-quarter operating profit to soar by over ten times, thanks to a significant rebound in semiconductor prices. This turnaround comes after a tough period last year marked by a sharp decline in chip demand.
The world's biggest producer of memory chips and TVs, estimated that its operating profit for the quarter ending March surpassed expectations, reaching nearly 6.6 trillion won ($4.89 billion), as per a report by Reuters.
The South Korean company reported a staggering 931 per cent increase in operating profit compared to the previous year.
Despite an estimated 11 per cent increase in revenue recorded in the corresponding period last year to 71 trillion won, the earnings did fall short of expectations somewhere. However, a clearer picture of the balance sheet will be visible at April's end as the company will release its detailed earnings.
Meanwhile, the higher than-expected performance of profit figure was largely by the company's chip division. It is anticipated to mark its first quarterly profit in five quarters. This turnaround is attributed to the resurgence of memory chip prices, bouncing back from a slump that began in mid-2022 due to weaker demand for electronic gadgets following the pandemic.
Earlier this week, Samsung's India division introduced its new line of home appliances, known as the Bespoke series, featuring advanced AI capabilities. These appliances come with built-in Wi-Fi, internal cameras, and AI chips. These products will leverage Samsung's Bespoke AI technology to allow users to easily control products through the SmartThings Application.
