Samsung today presented guidance for its first quarter results of 2022. Pending further consolidation and a more regulatory announcement on April 28, the South Korean company expects operating profit of $14.1 trillion. won, or 10.64 billion euros. It’s a 50% increase compared to the same quarter of 2021.
Its turnover should also increase, approaching 77 trillion won, or nearly 58 billion euros. Growth less strong than its profits, +18%.
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The announcement of its results for the first quarter of 2022 is already eagerly awaited. From its various activities, Samsung’s finances are a good indicator of the health of the technology sector. On the one hand, it produces electronic products (smartphones, tablets, televisions, etc.), on the other it supplies components to big names in the sector, like Apple or Sony.
In the last quarter of 2021, the South Korean giant became the world’s leading semiconductor manufacturer, overtaking the American Intel. The imbalance between supply and demand, particularly for memory chips, which Samsung has made its expertise, very quickly increased the profits of this activity, despite an increase in the cost of raw materials. The first quarter of 2022 should see this trend maintained, before a drop in selling prices expected by May. Nevertheless, the heavy investments made to increase and modernize its production of semiconductors are already bearing fruit.
Also, the release of its latest smartphone, the Galaxy S22, should be an additional positive point. Launched in February, it is off to a better start than its predecessor with sales 20% larger over the first six weeks of marketing.
The only downside to Samsung is the conflict between Ukraine and Russia. Last month, the company, like many others, announced it was suspending exports to the country. However, it holds a 30% share of the smartphone market there. To see if this will affect its financial performance.