Samsung expects a 53% jump in Q2 2021 profit, thanks to higher chip sales

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Samsung has published its earnings guidance for Q2 2021 (April to June) earlier today. The South Korean firm is expecting a healthy jump in revenue and profit, thanks to higher sales of semiconductor chips and electronic devices, driven by the remote learning and work-from-home trends during the pandemic.

The company is expecting its revenue for Q2 2021 to be around KRW 63 trillion (~$55.4 billion) and its operating profit to be around KRW 12.5 trillion (~$11 billion). That is a 19% jump in revenue and a 53% jump in operating profit compared to Q2 2020. These are just the company’s expectations, and it will post actual numbers sometime later this month. The company also mentioned that it includes one-time gains from its display business.

During the same time last year, the company had reported a 7.4% decline in sales as a majority of markets were closed due to COVID-19 related lockdowns. Samsung Electronics is expecting to sell more smartphones and TVs than any other brand, but it said that its sales could decline due to a shortage of chips and some other components.

Samsung is the world’s biggest memory chip manufacturer, and it is expecting a strong jump in sales, fuelled by rising demand from cloud computing, data center, and personal computing sectors. Analysts expect the South Korean firm’s chip business to have contributed over half of the company’s operating income for the quarter.

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