Samsung Forecasts Record Quarterly Revenues

Samsung Electronics forecasts record-high quarterly sales and a 50% year-on-year increase in operating profit in the first quarter due to the strength of memory chips and the strong launch of the latest flagship smartphones.

The sales of Samsung memory chips and smartphones can decline in the months ahead as factors due to the Russia-Ukraine war and the continuously increasing inflation. The company forecasted an operating profit of 14.1 trillion South Korean won ($11.6 billion) for the quarter that ended on March 31. 

Revenue is expected to reach the highest ever quarterly revenue to 77 trillion won, around an 18% rise from the prior year. Samsung is a major electronics maker and a supplier to consumer-electronics rivals including Apple Inc and Sony Group Corp.  

The company is also expected to have gotten a boost from its lineup of Galaxy S22 flagship smartphones. The premium devices of the company, bringing in the highest margins, are the main drivers of the company’s smartphone profits.

Samsung suspended the shipment of all its products to Russia due to geopolitical developments. It is the largest smartphone vendor in Russia with a 30% market share as of the fourth quarter of 2021.