Samsung cautious, despite earnings beating estimates
CHALLENGES:
The firm expects earnings at its mobile division to slip due to weak demand for flagship models and component shortages
Bloomberg
Samsung Electronics Co beat analysts’ profit estimates for the first quarter, but warned of a continued fallout from semiconductor shortages as the global economy recovers from the COVID-19 pandemic.
South Korea’s largest company reported a net profit of 7.1 trillion won (US$6.4 billion) for the three months ended March, beating the 6.7 trillion won average of estimates compiled by Bloomberg. Revenue rose 18 percent for the period.
The Suwon-based conglomerate has been riding a boom in stay-at-home demand for smartphones, PCs, home appliances and cloud services. However, Samsung lost out on chip sales when a factory in Austin, Texas, was knocked offline, exacerbating shortages that have hit companies around the world.