Samsung expects its operating profit to increase in the second quarter, likely driven by higher chip prices and continued consumer demand for electronics during the pandemic. The company also said that it benefited from a one-time profit.
The Korean electronics giant predicted on Tuesday that its operating profit for the three-month period ending June 30 would amount to around 12.5 trillion won ($ 11 billion), an increase of 53% compared to the period of the previous year. He also said that he expects his revenue to increase by almost 19% to 63 trillion won ($ 55.4 billion).
The earnings guide, released Tuesday before full earnings later this month, did not provide specific divisional results.
The quarter would represent something of a rebound for the Korean electronics giant, which in the same period last year reported a 7.4% decline in sales as its consumer-oriented businesses struggled as the coronavirus ravaged the world.
Samsung sells more phones and televisions than any other vendor, but said in the first quarter that it expected revenue and profits from its mobile unit to decline due to a drop in smartphone sales and shortages of some components.
The company also sells more memory chips than any other company on the planet and likely saw its earnings for the quarter driven by strong demand for servers that gave a boost to the semiconductor market.