Samsung posts record Q1 revenue on ‘solid’ Galaxy S21 sales

Samsung's flagship smartphone sales increased over the previous quarter, despite weak seasonality.

What you need to know

• Samsung has posted its financial results for the first quarter of 2021.
• Its operating profit jumped 45.5% YoY to KRW 9.38 trillion ($8.5 billion), while consolidated revenue increased 18.2% YoY to KRW 65.4 trillion ($59 billion).
• Samsung says its mobile profitability strengthened further in Q1 2021, led by strong sales of flagship Galaxy S21 series and mass-market Galaxy A-series phones.

Samsung today posted its earnings report for the first quarter of 2021. The company saw an 18.2% increase in revenue over Q1 2020 to KRW 65.4 trillion ($59 billion), while operating profit was 45.5% higher at KRW 9.38 trillion ($8.5 billion).

Samsung says "solid sales of smartphones and consumer electronics" outweighed lower earnings from its semiconductor and display business units. The IT & Mobile Communications Division posted KRW 29.21 trillion ($26.3 billion) in revenue and KRW 4.39 trillion ($3.9 billion) in operating profit during the January to March period.

Although overall market demand decreased compared to the previous quarter, flagship smartphone sales increased thanks to the Galaxy S21 series. Samsung's best cheap Android phones also continued to sell well. Samsung has forecasted a decline in flagship smartphone sales in the second quarter, but expects strong demand for its new Galaxy A72 and A52 phones.

It has also confirmed plans of "strengthening its leadership in the premium segment by popularizing the foldable category" and enhancing its lineup of affordable 5G phones. Recent rumors suggest Samsung will be announcing the successors to last year's Galaxy Z Fold 2 and Galaxy Z Flip at an Unpacked event in July.

Samsung's display earnings declined compared to the previous quarter as most smartphone makers were affected by chip shortages. Thanks to the wider adoption of OLED panels, however, earnings improved year-on-year. The company's semiconductor division posted KRW 3.37 trillion ($3.04 billion) in operating profit during the quarter, a significant decline over Q1 2020. Samsung attributes the decline to the production disruption at its Austin fab and an overall downward trend in NAND prices globally.