Mid-Trillion Operating Profit Forecast… Expect to rebound thanks to the Galaxy S21 effect in 1Q
In the fourth quarter of last year, the smartphone division of Samsung Electronics declined compared to the previous quarter due to increased marketing costs and reduced retaliatory consumption effects due to intensifying competition in the fourth quarter of last year.
On the 8th, Samsung Electronics announced its provisional earnings for the fourth quarter of consolidated sales of 61 trillion won and operating profit of 9 trillion won.
This is lower than the market forecast, and the IM division in charge of the smartphone business appears to have performed poorly compared to the previous quarter.
The IM division’s operating profit is estimated to be about 2.5 trillion won, similar to the same period last year (2.517 trillion won), and nearly half from the previous quarter (4.5 trillion won).
It is analyzed that shipments of smartphones from more than 80 million units in the previous quarter to 60 million units in the previous quarter due to the re-proliferation of the novel coronavirus infection (Corona 19) in the fourth quarter.
As the effect of the payment of Corona 19 subsidies in the United States and other places disappeared, retaliation demand, which led to good performance in the third quarter, is also expected to decline.
In addition, intensifying competition in the global market leads to increased marketing costs and worsening profitability.
However, there is also a forecast that network equipment performance will improve as 5G investment increases globally.
Analysis is suggested that wearable and tablet device performance is also on the rise.
In the first quarter of this year, stock prices predicted that the IM division’s earnings would improve again.
Samsung Electronics is preparing for global launch following the release of the flagship smartphone Galaxy S21 on the 15th of this month at 00:00 (Korean time).
The industry sees it as a strategy to check Apple’s iPhone 12 by about a month ahead of the previous year, and to dig into Huawei’s gap in the European market.
To this end, it is reported that Samsung Electronics will set the factory price of the Galaxy S21 to 990,000 won for the first time in its 5G flagship.
Researcher Kim Unho of IBK Investment & Securities said, “Assuming that the smartphone market will grow this year from last year, the growth rate of Samsung Electronics is expected to exceed the market growth rate.” did.
/yunhap news
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