Samsung Reveals Profit Jump in the Fourth Quarter

In the profit guidance for the last quarter of 2021, Samsung announced it expects higher quarterly profit in four years. The Korean tech giant expects operating profit to be 52.5 percent higher year-on-year driven by strong demand for memory chips and a rebound in smartphone sales.

Samsung estimated operating profit at KRW13.8 trillion ($11.5 billion), on revenue of KRW76 trillion, up 23.5 percent. But analysts are reportedly concerned a lockdown in the Chinese city of Xi’an, where Samsung has a chip factory, could impact supplies in the short term and lead to higher prices.

Net profit and revenue by division will be revealed when it issues its full earnings report later this month. In Q3, Samsung’s smartphone shipments fell 18.2 percent due to continued supply constraints and weaker demand, while operating profit declined 24.5 percent to KRW3.4 trillion, due in part to rising marketing costs. Samsung announced a restructure in early December, planning to combine its mobile business with its broader consumer electronics unit and reshuffling leadership.