By Cho Mu-hyun
Samsung Electronics, the world's largest electronics maker, posted an operating profit of 8.7 trillion won ($7.7 billion) for the first quarter of this year, its record for the quarter, the company said in a guidance report Friday.
The preliminary estimate is up 52.9 percent from the same period last year and a slight decrease from the previous quarter's 8.84 trillion won, which was its highest ever. The number is slightly higher than the market consensus of 8.5 trillion won prior to the filing.
It saw 52 trillion won in revenue, an increase of 14.87 percent from a year ago but lower than the previous quarter's 56 trillion won. The first-quarter figures are considered impressive, given that it is the low-demand season for electronics devices, says analysts.
The robust performance was attributed to higher-than-expected sales in smartphones and tablets. The company's IT & Mobile Communication unit, led by co-CEO Shin Jong-kyun, is estimated to have contributed more than 6 trillion won.
The strong performance of the mobile division was more than enough to offset lower-than-expected shipments of chips and liquid crystal display panels, which are also important component products for Samsung.
Performances of its home appliances are expected to have been mediocre due to the global recession and the low-demand season.
The first-quarter estimate means that Samsung Electronics' five straight quarters of marking record profit have ended, but most analysts believe the electronics giant will clinch another for the next quarter.
"In the second quarter there will be another record of more than 10 trillion won in operating profit backed by the launch of the Galaxy S4," said Lee Seung-woo, an analyst at IBK Securities, in a note to clients. "The flagship smartphones' shipment will be 37.8 million, a rise of 10 million from the first quarter."
The average sales price of Samsung's mobile devices will increase 17 percent from the previous quarter, which will contribute 7.9 trillion won to the next quarter's operating profit, Lee said.
The Galaxy S4 was showcased in March 14 to mixed response but few doubt the latest model will surpass its predecessor, the Galaxy S3, which sold more than 50 million phones.
Samsung reached 200 trillion in annual revenue for the first time last year and market watchers believe it will reap more this year.
Analysts estimate over 230 trillion won, though that estimate can change depending on the shipment results of the S4 and another strategic device that will likely hit the market in the fall, the Galaxy Note 3.
Net income was unannounced in the tentative filing or the specific performances of each division, which will likely be made clear on the last Friday of the month, when an official quarter filing will be made.
Samsung Electronics, the world's largest electronics maker, posted an operating profit of 8.7 trillion won ($7.7 billion) for the first quarter of this year, its record for the quarter, the company said in a guidance report Friday.
The preliminary estimate is up 52.9 percent from the same period last year and a slight decrease from the previous quarter's 8.84 trillion won, which was its highest ever. The number is slightly higher than the market consensus of 8.5 trillion won prior to the filing.
It saw 52 trillion won in revenue, an increase of 14.87 percent from a year ago but lower than the previous quarter's 56 trillion won. The first-quarter figures are considered impressive, given that it is the low-demand season for electronics devices, says analysts.
The robust performance was attributed to higher-than-expected sales in smartphones and tablets. The company's IT & Mobile Communication unit, led by co-CEO Shin Jong-kyun, is estimated to have contributed more than 6 trillion won.
The strong performance of the mobile division was more than enough to offset lower-than-expected shipments of chips and liquid crystal display panels, which are also important component products for Samsung.
Performances of its home appliances are expected to have been mediocre due to the global recession and the low-demand season.
The first-quarter estimate means that Samsung Electronics' five straight quarters of marking record profit have ended, but most analysts believe the electronics giant will clinch another for the next quarter.
"In the second quarter there will be another record of more than 10 trillion won in operating profit backed by the launch of the Galaxy S4," said Lee Seung-woo, an analyst at IBK Securities, in a note to clients. "The flagship smartphones' shipment will be 37.8 million, a rise of 10 million from the first quarter."
The average sales price of Samsung's mobile devices will increase 17 percent from the previous quarter, which will contribute 7.9 trillion won to the next quarter's operating profit, Lee said.
The Galaxy S4 was showcased in March 14 to mixed response but few doubt the latest model will surpass its predecessor, the Galaxy S3, which sold more than 50 million phones.
Samsung reached 200 trillion in annual revenue for the first time last year and market watchers believe it will reap more this year.
Analysts estimate over 230 trillion won, though that estimate can change depending on the shipment results of the S4 and another strategic device that will likely hit the market in the fall, the Galaxy Note 3.
Net income was unannounced in the tentative filing or the specific performances of each division, which will likely be made clear on the last Friday of the month, when an official quarter filing will be made.
![[VIDEO] Filipina K-pop idol and K-drama actress react to stereotypes about the Philippines](https://img.koreatimes.co.kr/upload/thumbnailV2/230201chantyjoyce2web_5891a49058fb1.jpg/dims/resize/178/optimize)
![[ANALYSIS] New order prevails in global battery industry](https://img.koreatimes.co.kr/upload/thumbnailV2/97f0a86072474a07bd1c388f4cfe0ff5.jpg/dims/resize/178/optimize)
![[INTERVIEW] Saudi Arabia seeks greater cooperation with Korea in NEOM](https://img.koreatimes.co.kr/upload/thumbnailV2/d8bcecac20a6465e8e44da2796041c64.jpg/dims/resize/178/optimize)
![[Video] How Koreans' favorite convenience store foods are made in factories](https://img.koreatimes.co.kr/upload/thumbnailV2/230206_gs_4cb7fa5bc3856.jpg/dims/resize/178/optimize)
![[INTERVIEW] Tati Gabrielle, actress of Korean, African-American descent, feels proud of her heritage](https://img.koreatimes.co.kr/upload/thumbnailV2/d2f45162b11d4965a7168093560f59e3.jpg/dims/resize/178/optimize)
