Samsung Profits Rise In Q1, But Chip Shortage Looms In Q2

Like so many other tech companies over the past year, Samsung has seen booming business during the coronavirus pandemic, and sales of its latest Galaxy smartphone are strong, generating 46% higher profits than the same period last year. However, like Samsung released its results for the first quarter of 2021 (PDF) posting a net profit of 7.1 trillion won (about $ 6.4 billion), the company warned investors that the next few months, and possibly the rest of the year, will have a significant impact due to of the global shortage of chips.

Samsung’s sales of profitable DRAM chips remained strong. However, the company said in a statement that the shutdown of production at its Austin plant after the Texas ice storm and the power outage in February contributed to the decline in sales of the chipmaking portion of his company. However, the demand for gadgets of all kinds and particularly strong sales of the Galaxy s21 range, drove the Consumer Electronics division’s profits higher than ever in the first quarter.

In the coming quarter, Samsung expects phone sales to decline “as flagship smartphone sales decline and some components experience supply issues.” Meanwhile, the display panel industry will focus even more on OLEDs for devices such as phones, convertible foldable devices, tablets, and laptops.

Regarding larger TV screens, Samsung has not commented. rumors of an OLED deal with LG for next year, simply stating that the company “will channel all of its efforts towards preparation for serial production of QD displays, next generation panel technology. Meanwhile, as the Olympics approach and demand is expected to slow as countries achieve herd immunity through vaccinations, Samsung said it will focus on sales of the current Neo QLED line and Micro LED screens.

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