World's biggest smartphone maker, Samsung forecasts 52.5% jump in Q4 profits
Samsung Electronics expects operating profits for the fourth quarter to soar 52.5 percent, the South Korean tech giant said in a statement on Friday, spurred by record sales. The world's biggest smartphone maker forecast 2021 fourth-quarter operating profits at around 13.8 trillion won ($11.5 billion), up from 9.05 trillion won in the same quarter last year.
The firm was boosted by record sales in the quarter, estimated at 76 trillion won, up 23.5 percent on-year, according to the statement, which added that the forecast reflected a one-time bonus payment to employees.
A spokeswoman told AFP annual sales in 2021 were also expected to be the highest ever.
The operating profit estimate was below analysts' estimate of 15.2 trillion won, according to Bloomberg News.
"A continued price growth in memory chips that ran three consecutive quarters until October last year has boosted Samsung's profit margins," said Park Sung-soon, an analyst at Cape Investment & Securities.
"The most significant source of income for Samsung lies in the memory chip business."
Samsung Electronics did not provide details Friday on the performance of its various divisions. The firm is expected to release its full results on January 27.
Analysts and investors are also keeping an eye on the impact of the citywide Covid lockdown in Xi'an, China, which is home to a Samsung semiconductor plant.
Samsung said last week that it had to "temporarily adjust operations" at the Xi'an facilities, without detailing how that would impact production.
While the coronavirus pandemic has wreaked havoc on the world economy, it has helped many tech companies boom.
Pandemic-driven working from home has boosted demand for devices powered by Samsung's chips, as well as home appliances
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