Samsung Electronics launched its flagship S-series smartphones earlier this year than its usual timeframe. The release of the Samsung Galaxy S21 series seems to have helped the company achieve its goal.
According to the report, Samsung likely saw a jump of 45 percent during the months of January to March, i.e. Q1 2021, thanks to the robust sales of the company’s smartphones and home appliances.
Because of the COVID-19 pandemic, people are not spending more time at home and this has resulted in the demand surge for a wide range of high-margin consumer electronics products, helping the company increase revenue.
The demand is so high that it has created a global shortage of chips and other components. However, the company registered a decline in the earnings for the chip division mainly because of the storm that suspended production at its plant in the United States.
The Reuters report, citing several analysts claims that the operating profit for the South Korean tech giant in the quarter is expected to have climbed to 9.3 trillion won, which is approximately $8.2 billion. This would mark Samsung’s highest operating income level for the first quarter since 2018.
Samsung is estimated to have cornered roughly 23% of the global market in the quarter, thanks to that launch and cheaper-than-usual pricing for its premium devices. That compares with a 20% market share in the same quarter a year ago and a 16% market share in the previous quarter when Apple released the iPhone 12.
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