Samsung’s profit skyrocketed to Rs 8.5 billion in three months
Samsung’s profit skyrocketed to Rs 8.5 billion in three months. South Korean electronics company Samsung has reported encouraging profits in the first quarter of 2021.
Samsung’s first-quarter profit rose 40 percent year on year, even as a US-based chip factory was temporarily shut down earlier this year due to extreme cold and blizzards.
According to a report released on Wednesday, Samsung’s total operating profit for the January-March period was 9.3 trillion Korean won ( 8.3 billion).
Sales of Samsung’s goods and services rose 17 percent during the period. In other words, Samsung has sold goods and services worth Rs 58.20 billion during the period. Profit and earnings figures were in line with earlier analysts’ forecasts.
The semiconductor factory in Austin was shut down last February after a severe snowstorm in Texas cut off power supplies. However, by the end of March, production at the factory had returned to normal.
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According to analysts, the disruption at the Austin-based chip factory has cost Samsung 358 million. Samsung’s Austin-based factory had to close at a time when chip industries around the world were unable to meet demand and there was a shortage of chips in the global market.
Last month, Samsung CEO Koh Dong-Jin told investors that the company was having problems with the supply chain. He said the company was struggling to address such issues. And was likely to face problems in the second quarter as well.
Samsung’s first-quarter profit boosted its smartphone business. The Galaxy S21 smartphone, which went public last January, is also gaining popularity in the market.