Samsung forecasts Q1 operating profit up 50.3 pct year-on-year

By AFP April 6, 2022 | 06:26 pm PT

Samsung signage is seen in a store in Manhattan, New York City, U.S., November 22, 2021. Photo by Reuters/Andrew Kelly

Samsung Electronics expects operating profits for the first quarter to rise 50.3 percent, the South Korean tech giant said in a statement Thursday, despite global supply chain woes.

The world's biggest smartphone maker forecast 2022 first-quarter operating profits of about 14.1 trillion won ($11.6 billion), up from 9.4 trillion won in the same quarter last year.

Samsung did not provide details on the performance of its various divisions. The company is expected to release its full results on April 28.

Analysts said the forecast was likely driven by strong performance from its smartphone division and solid demand for its memory chips.

"Price decline in memory chips will be contained on the back of stronger than expected demand," Kim Un-ho, an analyst at IBK Investment & Securities said in a report.

While the coronavirus pandemic has wreaked havoc on the world economy, it has helped many tech companies boom.

The shift to working from home during the pandemic has boosted demand for devices powered by Samsung's chips as well as home appliances such as televisions and washing machines.